The long, slow economic recovery in the wake of the housing crisis continues to bolster the home improvement sector.
The Home Depot reported record sales for Q2 2017, as consumers plunked down dollars to upgrade and beautify their homes and gardens. Overall sales rose 6.2% over the year-earlier quarter. Comparable-store sales gained 6.3% in Q2, while they rose 6.6% in the US.
The healthy results so far this year led The Home Depot to increase its expected fiscal results for 2017. It now projects sales for the year will rise 5.3% and comparable sales will increase 5.5%.
In contrast to other major sectors of the retail economy, most of the big home improvement chains have notched decent growth over the past five years, and the behemoths of the space, The Home Depot and Lowe's, have racked up five straight years of increases in same-store sales, a record that most other sectors can only dream of.
The long-unfolding housing recovery has been key to those gains—and is expected to continue to support results. In its earnings call on Tuesday, company executives said they expected continued favorable conditions in the housing market, and housing prices "have a long way to go" before they would be worrisome to the company.
On the earnings call, executives stressed the company's omnichannel focus. CFO Carol Tomé said over 43% of its digital purchases are picked up in-store. "This is one Home Depot, not an online or in-store business," she said.
Indeed, visitor data from Hitwise shows that The Home Depot has an outsized presence online, ranking as the No. 3 most visited US retail site in Q1 2017, trailing only Amazon and Walmart.