Atlanta, GA, September 28--- Strong new home building, consumer remodels and improving industrial markets were supporting home improvement giant Home Depot as it reinvests in its stores, chairman and chief executive Robert Nardelli said on Monday
"We feel there's stability in the marketplace as we see industrial sectors start to come back, creating jobs," Nardelli told reporters at an Atlanta area elementary school where Home Depot employees were performing community service work.
"Jobs create consumers; consumers create retail business in our stores."
Nardelli said a number of factors bode well for business, including a still strong U.S. housing sector.
"We've enjoyed a tremendous market year of new home construction, which has allowed a lot of people to trade in and trade up," he said.
Home Depot and rival Lowe's Cos. have benefited as low interest rates have led many consumers to buy or refinance homes. On Monday, the Commerce Department reported that sales of new single-family homes jumped a surprising 9.4 percent in August, the fastest acceleration of sales in almost four years.
Nardelli said consumers pressed by high gasoline prices may be putting off travel, and opting, in many cases, to invest in home projects. Aging baby boomers were converting bedrooms to workout areas or libraries, he added.
"What we're seeing is a consumer that is using the home much more as a sanctuary," Nardelli said. "People are working harder, they are more stressed than ever, and they take tremendous gratification and meet a lot of aspirational needs by redoing their home, making it more aesthetically pleasing."
He noted that Home Depot, which is investing heavily in store remodels, technology and marketing, has raised its profit growth forecast twice for the current fiscal year.
"We're feeling very good about the progress we're making and gaining share," he said.
