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Home Depot Post Sales Gains, Top Expectations

Home_Depot_Store_WideHome Depot delivered quarterly earnings that topped analysts’ expectations on Tuesday, helped by strong demand from professional contractors and builders. Shares moved up 4.42% on the day to close at $126.18. The stock traded in a range between $123.10 and $126.34 the latte a 52 week high. Volume was heavy with over 10 million shares trading hands, twice the normal daily volume.

The home-improvement retailer posted a 5.1% sales increase at stores open more than a year, including a 7.3% gain in the U.S. Shares of Home Depot, up 21% so far this year, rose 4% in recent trading to $125.77.

Home Depot Chief Financial Officer Carol Tome said Tuesday that home values are increasing, more homes are changing hands, and more households are being formed—all trends that work in favor of people spending more at its stores.

“We’re in the space of people improving their homes,” Ms. Tome said in an interview Tuesday. “We’re in a good space.”

Overall, for the third quarter, the company posted a profit of $1.73 billion, up from $1.54 billion a year earlier. Revenue rose 6.4% to $21.82 million. The sales gain was lifted primarily by a 4.4% increase in customer transactions, while the average size of each purchase rose slightly to $58.03 from $57.55 a year earlier.

About Home Depot

The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, and lawn and garden products, as well as provide installation, home maintenance, and professional service programs to do-it-yourself, do-it-for-me, and professional customers.

The company offers installation programs that include flooring, cabinets, countertops, water heaters, and sheds; and professional installation in various categories sold through its in-home sales programs, such as roofing, siding, windows, kitchen and bath refacing, furnaces, and central air systems, as well as act as a contractor to provide installation services to its do-it-for-me customers through third-party installers. It primarily serves professional remodelers, general contractors, repairmen, small business owners, and tradesmen. The company also sells its products through online.

As of the September 18, 2015, the company had 2,270 stores located in 50 states in the United States, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, Canada, and Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia.

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