Warm weather, housing recovery boost Home Depot's 4Q earnings
Beats sales expectations
Home Depot’s sales exceeded their expectations for the fourth quarter of 2015, which can primarily be credited to its sales getting boosted by an improving housing market and mild weather during the holiday, according to an article by Yashaswini Swamynathan for Reuters.
According to the article, net sales rose 9.5% to $20.98 billion in the fourth quarter, while net earnings rose 6.6% to $1.47 billion, or $1.17 per share, in the fourth quarter, above analysts' average estimate.
From the article:
Home Depot is benefiting from a pent-up demand for houses after the 2008 financial recession. Low interest rates and growth in jobs, wage and credit are also spurring customers to spend more on renovating homes.
Warmer-than-average weather during the holidays also helped Home Depot drive sales across a number of outdoor categories as activities such as gardening carried on for much longer, Conlumino analyst Carter Harrison said.
Low interest rates and growth in jobs, wage, and credit are encouraging customers to spend more on home renovation, according to the article.
Meanwhile, about 56% of Americans believe their home’s value has increased, according to a recent study by TD Bank. With rising property values, homeowners are increasingly optimistic and ready to re-invest in their homes.