NORTH TEXAS (CBSDFW.COM/CNN) – Workers at Home Depot locations in Texas and across the country will be getting a heftier paycheck as the housing market booms and the company passes on the wealth.
Home Depot reported better-than-expected sales and earnings Tuesday, and the company is planning to invest $1 billion annually on increased worker benefits. That’s on top of the $1.7 billion in benefits the company has already granted this year in response to COVID-19.READ MORE: Public Health Experts Say Dallas Cowboys COVID Outbreak Shows Pandemic Far From Over
Home Depot unveiled temporary programs during the coronavirus pandemic such as expanded paid time off and weekly bonuses. But the company has decided to give hourly workers a permanent pay increase as the housing market continues to thrive.
Sales at stores that have been open for at least one year surged 24% in the third quarter. And Home Depot reported a net profit of $3.4 billion, an increase of more than 20% from a year ago.
“[T]he investments we have made in the business as well as our associates’ focus on customers…are critical in enabling market share growth in any economic environment,” CEO Craig Menear said in the company’s earnings release.
Home Depot is thriving during the pandemic as many consumers focus on home improvements at a time when they may be less willing (or able) to spend on leisure activities such as dining out or taking a family trip.READ MORE: AP Source: Rangers Snag Shortstop Corey Seager For $325 Million, 10-Year Deal
“Spending on the home continues to be a priority,” Neil Saunders, managing director of retail research firm GlobalData, said in a report.
“Savings from lower outlays on commuting, eating out and not taking vacations have given consumers a pool of cash which they have diverted into home projects and activities,” Saunders said. “Improvement continues to be at the forefront of spending.”
Home Depot chief financial officer Richard McPhail echoed that sentiment during a conference call with analysts Tuesday.
“We are encouraged by consumer sentiment and consumption trends, which show home improvement receiving more than its historical share of consumer spending,” he said. “Housing metrics are significantly stronger than when we entered this crisis.”MORE NEWS: TCU Officially Hires SMU's Sonny Dykes As New Coach
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