Home Depot Inc
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The company also said it expected profit and same-store sales for the year ending January to come in at the top end of its forecasts, helping to send its shares up 2.5 percent in premarket trading on Tuesday.
Consumers spent more on houses, home improvement products, appliances and autos than on discretionary items such as apparel in the August-October quarter, analysts have said.
The housing recovery in the United States has been gaining traction, with homebuilder sentiment hitting decade highs in July, August and September, according to data from the National Association of Home Builders.
Builders' confidence rose to a near 10-year high in October, according to a survey released last month.
Home Depot's strong results contrast with those of department store operators Macy's Inc
Home Depot's shares fell 4.7 percent last week, less than the 6.6 percent decline in the S&P 500 retail index <.SPXRT>.
Home Depot's smaller rival Lowe's Cos Inc
Home Depot same-store sales rose 5.1 percent in the third quarter ended Nov. 1, above the 4.6 percent growth expected by analysts polled by research firm Consensus Metrix.
Comparable sales at its U.S. stores rose 7.3 percent, comfortably ahead of analysts' average estimate of 5.9 percent.
The company expects overall same-store sales to grow 4.9 percent in the year ending January.
Home Depot's net income rose 12.2 percent to $1.73 billion, or $1.35 per share, in the quarter.
Excluding items, it earned $1.36 per share, above analysts average estimate of $1.32, according to Thomson Reuters I/B/E/S.
Net sales rose 6.4 percent to $21.82 billion. Analysts on average had expected revenue of $21.83 billion.
The company said it expects full-year earnings of $5.36 per share. Analysts were expecting $5.31 per share.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Savio D'Souza)