by Christopher Freeburn | February 27, 2014 12:37 pm
In a bid to cash in on growing consumer interest in upscale home renovations, Home Depot (HD) is boosting the array of premium products it offers.
Home Depot says that the number of customer shopping bills over $900 rose 5.5% during the three months that ended on Feb. 2. In fact, premium product sales at Home Depot have grown for four consecutive quarters. By contrast, the number of sales under $50 rose just 2.5% over the past three months, the Wall Street Journal notes.
In order to lure customers looking for a more expensive home appearance, Home Depot plans to unveil premium patio furniture and barbecue equipment, among other high-end products.
Though U.S. home sales have continued to post strong numbers, Home Depot expects the market to cool a bit in 2014 with home prices rising at half the rate they rose last year.
For the full fiscal year, Home Depot expects same-store sales to climb by 4.6%. The retailer has trimmed its outlook for full-year revenue growth from prior estimates of a 5% gain, to a 4.8% increase due to the likelihood of a weaker U.S. dollar going forward.
Earlier this month, Home Depot said it planned to hire 80,000 seasonal workers this spring, typically the retailer’s strongest season.
HD stock climbed modestly in Thursday mid-day trading. Home Depot stock has gained about 20% over the past year.
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