Home Depot posts smaller-than-expected comparable sales drop, but narrows forecast
Investing.com -- Home Depot (NYSE: HD) has reported a smaller-than-anticipated decline in third-quarter comparable sales, although the home improvement chain narrowed its full-year financial forecast as shoppers reined in spending on large-scale projects during a time of high inflation and elevated interest rates.
In the three months ended on Oct. 29, the Atlanta-based company posted a 3.1% drop in comparable sales, a shallower fall than Bloomberg consensus forecasts for a 3.31% decrease. Net earnings fell by 12.2% versus the corresponding period last year to $3.81 billion.
In a statement, Chief Executive Officer Ted Decker said the business continued to see "pressure in certain big-ticket discretionary categories," as price-conscious customers chose to focus on smaller at-home projects.
The business flagged some caution around its outlook, saying it now sees its fiscal 2023 sales and comparable sales slipping by 3% to 4% on an annualized basis, narrowing its prior range of 2% to 5%.
Diluted per-share income is also estimated to decrease by 9% to 11%. It had previously predicted a fall of between 7% to 13%.
Home Depot's results begin a stream of earnings from some of America's largest retail chains this week, which could give an indication of the health of the American consumer heading into the all-important holiday shopping season.