
Millennials may be facing unique hurdles in home buying but when they buy, they do so with investing in mind, according to Home Depot chief financial officer Carol Tomé. Tomé said that many millennials report wanting to work on their house because they view it as a "good investment," which the executive said is "music to our [Home Depot's] ears," CNBC reports.
Homeowners that think of their dwelling as an investment, as opposed to an expense, tend to spend more money on their home, she said. Home equity values have more than doubled within the last decade, and that has helped boost sales at the home improvement chain, she added.
“People are coming in and doing major projects” such as updating kitchens, bathrooms and basements, Tomé said. “They feel like their home is an investment.”
Home Depot’s own in-house investing is also yielding sales results. The company in 2017 announced a plan to spend $11 billion to better integrate its stores and digital experience. The plan included hiring 1,000 tech team members in part to defend Home Depot’s lead over Lowe’s and stave off competition from Amazon.
Revenue in the company’s latest quarterly report increased 5.7% year over year, totaling more than $26 billion. Online sales alone, which made up less than 9% of revenue, grew 23% in the first quarter of fiscal 2019.
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