Home Depot sales rise 5%, defying high gas prices and falling consumer confidence

Home Depot announced Tuesday that the Big Box home-improvement chain beat fiscal first-quarter expectations, reporting sales of $41.77 billion, up 5% from a year earlier. 

The outcomes suggest the core homeowner shopper remains resilient despite high gas prices and falling consumer confidence, according to CNBC.com.

CFO Richard McPhail said a U.S. homeowner is more insulted from current economic impacts than other demographics, so the leading retail outlet is still seeing strong results. The U.S. economy still struggles with persistent, above-desired inflaation, compounded by soar gas prices amid the U.S.-Iran war. 

However, rising geopolitical tensions and a broken housing market will continue to lower consumer confidence, which will eventually impact Home Depot customers, McPhail said. They continue to defer larger projects over the last few years. 

Home Depot reported a net income for the three-month period ending on May 3 of $3.29 billion, or $3.30 per share, compared with $3.43 billion, or $3.45 per share, a year earlier. The company still expects sales to grow between 2.5% and 4.5% in the fiscal year.