Blame It On Radio? Home Improvement Retailers' Q3 Revenues Top Expectations.

For two of the top 20 radio advertisers during the first half of 2022 – both home improvement retailers – business is good, very good.

The Home Depot, which ranks eighth among all radio advertisers for the first six months of the year, according to Media Monitors, reported a 5.6% lift in fiscal third-quarter sales, to $38.9 billion, with comparable domestic sales increasing 4.3%. Net earnings for the Atlanta-based retailer hit $4.3 billion, vs. $4.1 billion in the comparable period last year.

For Lowe's, Media Monitors' 17th biggest radio advertiser in the first half, Q3 revenues moved to $23.5 billion vs. $22.9 billion a year ago, while comparable sales in the U.S. were up 3%. The Mooresville, NC-based company has upped its full year outlook, with expected sales between $97-98 billion.

While results for both exceeded expectations, given a sluggish housing market and inflation's impact on family budgets, several analysts are less optimistic. “[While Home Depot] remains confident in its ability to gain market share no matter what type of environment it may face, we see likelihood for housing-related headwinds on the back of sharply rising mortgage rates,” Seth Basham, an analyst who follows Home Depot for Wedbush Securities, tells MediaPost. Peter Benedict, who follows the company for Baird, adds, “Project demand remains strong, but the continued decline in transactions and negative comparable sales across certain parts of the store will add to the cyclical risk debate.”