Home Depot (NYSE:HD) and TJX are bucking negative retail trends as shoppers shift spending from apparel and personal items to home goods.
The Atlanta-based home improvement chain reported its highest quarterly sales and net earnings in the company's history. Comp-store sales grew 4.7 percent and the company saw a 9.3 percent spike in profit for the recently completed quarter.
Home Depot is reaping the benefits of a strong housing market and increased spending on home improvement. Management believes sales will top $101 billion by 2018.
It's part of a larger trend that shows consumers shifting their spending from apparel to home goods, both big ticket and more decorative items.
TJX Cos. (NYSE:TJX) is another beneficiary, reporting a 4 percent comp-store sales gain, 7 percent increase in sales and a 5 percent jump in net income for the second quarter. While sales at all the company's banners were strong, the HomeGoods division is well-positioned in a market where department stores and even discounters are suffering from online competition.
- see this CNBC story
- see this Home Depot financial release
- see this TJX Cos. statement