Profit jumped 14 percent at the world's largest home improvement retailer as customers bought items they had put off in the winter. Fred Katayama reports.
Home Depot has a new spring in its step. More money spent to fix homes after the harsh winter boosted quarterly sales and profit at the world's largest home improvement retailer. Comparable store sales in the U.S. shot up almost 6.5 percent, nearly double the clip of the first quarter. Customers picked up flooring products and bought appliances at its newly expanded showrooms. Under CEO Frank Blake, Home Depot has slashed store expansion and focused instead on growing sales and improving service at its existing stores. It sees business improving further. It raised its earnings forecast for the full year. UBS analyst Michael Lasser says Home Depot nailed it, "We think this print was just what the stock needed to help it break out of the funk that it has been in over the last year." Home Depot stock, which has risen just 1.5 percent this year, rocketed higher in early trading to an all-time high. Archrival Lowe's reports its results tomorrow.