ATLANTA - Kitchen remodeling, cabinetry and high ticket purchases helped Home Depot increase net earnings 12 percent. Sales were $20.6 billion for the period, up 1.7 percent; net earnings were $1.5 billion.

Analysts took results at the bell-weather remodeling and lumber supply firm as an indicator that consumers are comfortable spending on home interior improvement.

Home Depot is also in the process of acquiring the cabinetry and bathroom vanity manufacturer  U.S. Home Systems, which provides cabinet refacing services and supply to most regions of Home Depot. Some shareholders are trying to block the deal between Home Depot and U.S>Home Systems.

U.S. Home Systems employs 1,000, and manufactures its own cabinet refacing materials and bathroom cabinetry. It holds an exclusive on providing kitchen and bath refacing products and services to Home Depot. U.S. home Systems also sells closet and garage organizational systems through the hardware, lumber and home improvement retail giant.

Home Depot also carries closets cabinetry and home storage solutions from Martha Stewart, Closet Maid.