(Reuters) -Home Depot beat Wall Street estimates for first-quarter sales on Tuesday as the world’s largest home improvement retailer enjoyed resilient demand from professional contractors and small-scale repair works by existing homeowners.
Shares of the Atlanta-based retailer jumped more than 2% in premarket trading as the company also kept its fiscal 2025 forecast unchanged, with a sales growth target of 2.8%.
Home Depot has benefited from demand for tools used in do-it-yourself house projects, repair and maintenance ahead of the spring season, even as budget constraints weighed on larger home renovation activities.
It has also capitalized on demand from its professional customer base, including contractors, by increasing investment in its supply chain after acquiring Texas-based SRS Distribution last year.
“….We saw continued customer engagement across smaller projects and in our spring events,” CEO Ted Decker said in a statement.
Home Depot will not raise prices because of U.S. tariffs, CFO Richard McPhail told CNBC in an interview. Reuters could not immediately verify the information independently.
The company sources less than half of its goods from outside North America, and has said it has reduced exposure to China in recent years. In February, Home Depot indicated it was well-placed to manage any impact from tariffs. Its foreign manufacturing hubs include Mexico, Canada, China, India, Vietnam, Taiwan and Europe.
The company posted net sales of $39.86 billion for the quarter ended May 4, a 9% jump from last year. Analysts on average had expected an 8% rise to $39.31 billion, according to data compiled by LSEG.
(Reporting by Savyata Mishra in Bengaluru; Editing by Devika Syamnath)
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