Home Depot (NYSE:HD), the world’s largest home-improvement chain, is showing no signs of slowing down. The Atlanta-based retailer recently announced year-over-year revenue and profit growth of 32.7% and 84.6%, respectively, in the first quarter of fiscal 2021.
Expectations were for decelerating growth coming out of the pandemic, as consumers start spending money on things other than home projects. But, so far, they haven’t come to fruition. This is clearly great news for shareholders.
The business is still facing two very difficult comparisons in the second and third quarters of 2021 (compared to the same periods last year). So, what do the next 12 months look like for Home Depot?
Home Depot continues to build
Home Depot is benefiting right now from an overheated housing market. In the four-week period that ended May 9, median home sales prices soared 22% versus the same time last year. Homes that sold during the period sat on the market for just 18 days, a record low.
Home Depot will stand to gain as consumers are inclined to spend on home improvement projects before selling a house and after buying a new one. And as housing prices keep rising, homeowners feel more comfortable investing to spruce up their properties.
Adding fuel to the fire is the looming threat of potentially higher interest rates, prompting consumers who may have been on the sidelines to now enter the market for a new…