Home Depot separates itself from retail crowd in 2Q

NEW YORK (AP) — The slow but steady housing recovery continues to lift Home Depot, pushing sales and profits above Wall Street expectations during the second quarter.

The world's biggest home-improvement retailer boosted its annual outlook for a second time this year, underscoring a transformation in the way Americans spend money.

Department stores, also reporting earnings this month, have largely been routed. The wandering eye of shoppers increasingly falls on the home, cars and electronics, rather than shoes, skirts and shirts.

On the same day that Home Depot upped its guidance, Wal-Mart reduced its expectations after missing second-quarter profit projections.

U.S. data shows that rising retail sales are being driven by spending on furniture, cars and things like sporting goods.

Home Depot's customers are walking through its doors more often, and they're spending more once they're inside.

The average receipt during the quarter was $59.42, a 1.7 percent increase, and the number of transactions rose 2.6 percent.