June 23, 2024

Political Commentary

News Politics Business Sports

Home Depot (HD) Q3 2023

2 min read

Home Depot‘s quarterly sales declined 3% from the year-ago period, but topped Wall Street’s expectations as customers chipped away at more modest projects and home repairs.

The retailer indicated caution about the coming months, as it narrowed its full-year outlook. It said it now anticipates sales will fall by 3% to 4% from the prior year, compared to a previous expectation of a 2% to 5% decline. Home Depot expects earnings per share to slide by 9% to 11%, compared with prior guidance of a 7% to 13% drop.

In an interview with CNBC, Chief Financial Officer Richard McPhail said the company’s results and forecast reflect that the year “is a period of moderation in home improvement.”

“A customer who might have remodeled their entire home may be opting for a partial remodel,” he said. “Maybe they won’t redo their entire kitchen. Maybe they’ll just do the countertop and backsplash. And so it’s really just the downscaling of projects that we’ve seen.”

Here’s what the retailer reported for the fiscal third quarter ended Oct. 29 compared with what Wall Street was anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv:

  • Earnings per share: $3.81 vs. $3.76 expected
  • Revenue: $37.71 billion vs. $37.6 billion expected

Home Depot reported net income of $3.81 billion, or $3.81 per share, down from $4.34 billion, or $4.24 per share, a year earlier. Revenue fell from $38.87 billion in the year-ago period.

Comparable sales declined 3.1% year over year, a drop that wasn’t as deep as the 3.6% analysts expected, according to Factset. However, it marked the fourth straight quarter of falling comparable sales, an industry metric that takes out the effect of store openings, closures and renovations.

Home Depot has faced dual challenges over the past year: high mortgage rates have squeezed potential homebuyers, and high inflation makes big-ticket items and major renovations a tougher sell.

In recent quarters, customers have pulled back on pricier projects and big-ticket…

2023-11-14 06:01:00

All news and articles are copyrighted to the respective authors and/or News Broadcasters. VIXC.Com is an independent Online News Aggregator

Read more from original source here…

Leave a Reply

Copyright © All rights reserved. | Newsphere by AF themes.