Home Depot reaped the benefits of the pandemic shutdown as consumers turned their attention to home improvement projects. Profits in the second quarter grew 25%.
According to the retailer, sales to consumers working on DIY projects outpaced sales to professionals. Home Depot's chief financial officer Richard McPhail credited the shutdown for the increased spending among DIYers. With travel, restaurant, and entertainment spending largely curtailed, consumers instead spent on maintaining and renovating their homes.
Despite the outstanding results, Home Depot's shares fell slightly in afternoon trading. The pandemic has made executives reluctant to express too much optimism about the rest of the year. It has also driven up costs for the retailer.
Home Depot suspended its forecast in May, citing the uncertainty related to the coronavirus pandemic and its impact on the economy.Read the full story at CNBC.