Despite inflation, supply chain snags and a tight labor market, Home Depot enjoyed an increase in sales in its third quarter due to continued demand for home improvement projects.
"Our customer has remained resilient and engaged," CEO Ted Decker said during an earnings call Tuesday (Nov. 15), noting that Home Depot shoppers tend to be more financially secure and own their homes.
They're also continuing to spend more time at home, he added, and the homes are continuing to age and need renovations and repairs.
That's led to "solid demand" for home improvement projects among the company's professional and DIY customers, Decker said. The company's earnings report shows Home Depot saw $39.9 billion in sales, a 5.6% increase year over year since last year's third quarter.
Decker expressed confidence this demand will continue, despite the downturn in the U.S. housing market. Asked during the call about the company's prospects for 2023, he said Home Depot will discuss the coming year after it posts fourth-quarter results in February.
As PYMNTS reported in August, the "nesting" trend helped Home Depot reach record sales and profits for its second quarter this year – $43.8 billion in revenue reflecting a 6.5% rise in comparable store sales – thanks to an ongoing backlog of home improvement projects.
Decker said Tuesday that the company was also helped by its tech investments, such as improved functionality in its app, which has boosted engagement and led to double digital growth in monthly active users.
Home Depot has also introduced Sidekick, an "in-aisle tasking tool," Decker said, which directs workers to the most high-valued task in a given location of the store. The company has also recently launched its Path to Pro platform, which connects contractors to skilled tradespeople.
These follow a number of tools the company has rolled out this year for its "pros" segment, such as new capabilities on its B2B website to improve the interconnected shopping and quoting experience for these contractors.