New year, same results; Home Depot sales boom in 1Q

A Home Depot store is shown, Friday, May 14, 2021, in North Miami, Fla. Home Depot continues to fill the needs of the surging housing market during the pandemic, with fiscal first-quarter sales soaring and blowing past Wall Street's expectations. (AP Photo/Wilfredo Lee)

An overcharged housing market is keeping aisles full at Home Depot and the company reported sales that blew past Wall Street expectations Tuesday.

Sales hit $37.5 billion, up 32.7% from the same year, far better than analyst projections of $34.88 billion, according to Zacks Investment Research

Sales at stores open at least a year, a critical indicator of a retailer's health, jumped 31%. In the U.S., those sales rose 29.9%.

“The number of people undertaking projects around the home continues to increase. There is a very clear pattern of investing in living spaces whether through full remodeling or partial decoration," said Neil Saunders, managing director of GlobalData.

Home Depot's profit nearly doubled, hitting $4.1 billion, or $3.86 per share. That compares with $2.2 billion, or $2.08 per share, a year ago. Wall Street expected $3.04 per share.

Home improvement stores have bustled during the pandemic with millions working and attending school remotely. Many families found that larger homes, or at least different homes, were a necessity. That has fueled sales at Home Depot.

Home Depot Inc. also updating its face mask policy, following the eased guidance from the Centers for Disease Control and Prevention. The home improvement retailer says customers and workers who are fully vaccinated are not required to wear masks or facial coverings in its stores, except where it’s mandated by state or local ordinances. Masks are still encouraged for those who aren’t fully vaccinated.

Shares climbed 2.1% before the market opened.