Home Depot revenue rises as spending holds steady

Home Depot reported stronger-than-expected first-quarter results and kept its full-year forecast unchanged, showing that many homeowners are still spending despite economic worries stemming from high gas prices. 

The company earned $3.43 per share on revenue of $41.77 billion, beating Wall Street estimates. Sales rose nearly 5% year over year.

Company executives said homeowners are still shopping for home improvement products, but many are delaying larger and more expensive renovation projects. High mortgage rates, weak housing sales, and lower consumer confidence continue to affect spending.

Comparable sales increased 0.6%, slightly below expectations, while customer transactions fell for the fourth straight quarter. Profit margins also came in lower than analysts expected.

Home Depot is focusing on professional customers such as contractors, roofers, and builders to support future growth. They currently make up 50% of its revenue.

The retailer recently bought companies, including SRS Distribution and GMS, to expand its reach in the professional home improvement market, which it estimates is worth about $700 billion.