Home Depot Inc., the world's largest home-improvement retailer,reported a third-quarter profit gain that exceeded analysts'estimates, spurred by an increasing number of customers who spentmore.

Net income increased 12 percent to $934 million, or 60 cents ashare, in the quarter that ended Oct. 30 from $834 million, or 51cents, a year earlier, Atlanta-based Home Depot said today in astatement. Analysts projected 59 cents, the average of 22 estimatesin a Bloomberg survey.

Chief Executive Officer Frank Blake has lured consumers pinchedby sagging home prices by shifting back-office employees to thesales floor and improving distribution from warehouses to stores.The number of transactions increased by 1.2 percent to 325.3million while shoppers spent more, boosting the average ticket by 3percent to $53.03.

“They are operating very efficiently and strongly in a terriblehousing market and a prolonged economic downturn,” John Tomlinson,an analyst at ITG Investment Research, said today by telephone fromNew York. The firm doesn't rate stocks. “They continue to gainmarket share.”

Sales at stores open at least a year advanced 4.2 percent,topping the average estimate for a 3.2 percent gain by sixanalysts. By that measure, Home Depot outpaced Lowe's Cos. for a10th straight quarter. The Mooresville, North Carolina-based rivalreported yesterday that comparable-store sales advanced 0.7 percentin the quarter.

Home Depot's revenue increased 4.4 percent to $17.3 billion,helped by spending related to Hurricane Irene in August andSeptember.

The company said profit this year may be $2.38 a share, up froma previous forecast of $2.34. The company left unchanged itsforecast for sales to increase by 2.5 percent.

The company boosted its quarterly dividend 16 percent to 29cents a share, payable Dec. 15 to shareholders of record on Dec.1.

Home Depot rose 0.5 percent to $38.25 at the close yesterday inNew York. The shares have advanced 9.1 percent this year.