Wells Fargo

Home Depot rides housing boom to record sales, profit

Home Depot posted record sales and earnings during its second quarter and raised its profit expectations for the year as the U.S. housing market continues to warm up.

The home improvement retailers have been a bright spot as other shops like department stores are seeing sales slow, hurt by consumers who've shifted away from buying clothing and more toward experiences, fixing up their houses and services like spas.

Atlanta-based Home Depot's profit jumped 9 percent to $2.44 billion, or $1.97 per share, edging out Wall Street expectations by a penny, according to analysts surveyed by Zacks Investment Research.

Sales surged 6.6 percent to $26.47 billion, also slightly...