Home Depot Sales Rise on Housing Market Recovery

Home Depot, the number one U.S. home improvement chain, reported better-than-expected quarterly sales as demand rose amid an improvement in the housing market.

Shares of the company rose 2.3 percent to $125.74 in premarket trading on Tuesday.

Home Depot has benefited from rising home prices, combined with job, wage and credit growth that has prompted consumers to spend more money on improving their homes.

Sales at established stores in the United States rose 8.9 percent in the fourth quarter ended Jan. 31. Analysts on average had expected sales to rise 5.3 percent, according to research firm Consensus Metrix.

Net earnings rose to $1.47 billion in the quarter, from $1.38 billion a year earlier.