Home Depot delivered quarterly earnings that topped analysts' expectations on Tuesday, helped by strong demand from professional contractors and builders.
Consumers spent more on houses, home improvement products, appliances and autos than on discretionary items such as apparel in the August-October quarter, analysts said.
Smaller rival Lowe's, which will report on Wednesday, is also expected to have benefited from strong spending on housing.
The report sent Home Depot's premarket share price higher.
The home improvement retailer posted third-quarter adjusted earnings of $1.36 per share, up from $1.11 in the year-earlier period. The quarter's earnings were reduced by one cent a share due to costs associated with a 2014 data breach, the company said.
Revenue rose to $21.82 billion from $20.52 billion a year ago.
Analysts polled by Reuters expected the company to post earnings per share of $1.32 on revenue of $21.82 billion.
"I think the big headline here is going to be that, following a lot of missteps by retailers lately, this is a bright spot," Brian Nagel, Oppenheimer & Co. senior equity research analyst, told CNBC's "Squawk Box."