Home Depot just announced yet another strong quarter thanks to the ongoinghome improvement boom.- The retailer saw average ticket sizes increase 10.3% year over year.
- According to CEO Craig Menear, the market remains an "unprecedented demand environment."
The home improvement boom has shown no signs of abating among US consumers, even as vaccination rates rise. In fact, the latest sales numbers from Home Depot indicate that shoppers are moving into more ambitious and expensive projects.
Home Depot reported its earnings Tuesday, seeing comparable quarterly sales spike 29.9% in the US. Overall, customer transactions increased by 19.3%, and they were spending more year over year: The company's average ticket jumped 10.3%, from $74.70 on May 3, 2020 to $82.37 on May 3, 2021.
Executives pointed to "unprecedented levels of web traffic," as well as strong in-store sales. CEO Craig Menear said that Home Depot was navigating an "unprecedented demand environment."
"Similar to what we reported in our previous three quarters, the growth in our comp average ticket was driven by elevated project demand, customers trading up to new and innovative products, and continued inflation in many product categories, including lumber," Chief Merchandising Officer Ted Decker said.
Wealthy consumers in particular have been dropping thousands of dollars on home repairs and projects like installing high-end appliances, despite logistical tangles. The Consumer Price Index also recorded a spike on furniture prices in April, and household furnishings and operations bumped up 0.9%.
Decker said that Home Depot's lumber, kitchen, and bath departments soared in terms of comparative performance in the first quarter, and that 14 departments "hosted comps at or above 20%."
In response to a question from Evercore analyst Greg Melich, the CEO also called out the company's "pro business" and "service business" as factors that helped "drive a higher average ticket."
Professionals like contractors are some of Home Depot's biggest customers, and account for around 45% of the company's sales. According to Decker, consumers are increasingly allowing these pros back into their houses for larger home improvement projects.
"We're happy with the fact that the pro seems to have easier access to the job site and is getting to the job site easier," Decker said.