Home Depot and Lowe’s expected to report strong FQ2 growth as home upgrades surge during pandemic (NYSE:HD)

Home improvement stalwarts Home Depot (NYSE:HD) and Lowe’s (NYSE:LOW) are expected to post robust fiscal Q2 results this week as sequester-at-homers direct their energies at DIY projects, stoking demand that has surprised executives.

Same-store sales growth is expected to be 10.9% at HD and 14.3% at LOW, besting FQ1’s 6.4% and 11.2%, respectively. HD is set to announce FQ2 results on Tuesday, August 18, before the open followed a day later by LOW, also before the open.

Consensus for HD is EPS of $3.71 on revenue of $34.6B. For LOW: EPS of $2.96 on revenue of $24.2B.

Early in the pandemic, executives feared a political backlash from promoting nonessential products that would draw large crowds of people. Daily foot traffic since April at HD is at least 35% above last year’s according to Unacast.

Margins at HD got a boost in FQ1 after it canceled its Spring sales event since it sold fewer discounted products.

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