Home Depot posts stronger-than-expected Q1 sales and profits

Shares of Home Depot were advancing before the opening bell in New York after the company blew the doors off Street estimates for its first quarter.

For the three months ending on 31 March, the home improvement retailer reported a 32.7% jump in sales to reach $37.5bn, far surpassing the year-earlier figure of $28.26bn.

Consensus had been for revenues of $34.82bn.

"Fiscal 2021 is off to a strong start as we continue to build on the momentum from our strategic investments and effectively manage the unprecedented demand for home improvement projects," said Craig Menear, the firm's chairman and chief executive officer.

"I am proud of the resilience and strength our associates have continued to demonstrate, and I would like to thank them and our supplier partners for their hard work and dedication to our customers."

The company's performance was also "strong" on a comparable basis, with sales in the US ahead by 29.9%.

Net earnings meanwhile nearly doubled, increasing from $2.2bn to $4.1bn or $3.86 per share (consensus: $3.08).

As of 1200 BST, shares of Home Depot were rising by 2.4% to $327.7.

-- More to follow --