Home Depot's Fourth-Quarter Profit Exceeds Expectations

The largest home improvement retailer in the world, Home Depot, recently reported a net income increase of 32 percent to $774 million, a number that exceeded the expectations of most analysts.

Bloomberg reports dropping unemployment levels and warmer weather contributed to a 5.7 percent income increase for stores that have been open for at least one year. That gain was the largest reported by Home Depot since the first quarter of 2004, and exceeded the average analyst estimate of 3 percent.

"It was a pretty fantastic quarter given the continued pressure on the U.S. consumer and the overall softness of the U.S. recovery," John Tomlinson, an analyst at ITG Investment Research in New York told the news source. "The warmer weather helped outdoor home renovation projects and allowed builders to get a head start on construction."

The retailer's numbers were aided by construction spending, which increased by 1.5 percent in December, according to the Commerce Department. This was the largest increase since August, according to Bloomberg.

The Associated Press reports shares of Home Depot rose 77 cents in early trading following the positive report.