| Due
to consumers delaying major projects, fewer big-ticket purchases, cold
weather, and declining lumber costs, Home Depot reported its lowest revenue in two decades and cut its fiscal year sales projection. Long-term home improvement demand is anticipated to be supported by a limited housing supply and an aging house stock. - According
to Home Depot's CFO, higher mortgage rates and a shift toward service
spending have made it even more challenging to fund larger projects.
- Home
Depot's first-quarter revenue of $37.26B fell short of analysts'
forecasts of $38.28B, while the company's profits per share came in at
$3.82 instead of $3.80.
- The number of consumer transactions at
Home Depot dropped by over 5% from the prior year, but the average
ticket size was steady at $91.92.
- In the first quarter, Home
Depot's comparable sales declined 4.5%, leading the company to expect a
sales and relative sales decline of 2% and 5% for the fiscal year,
compared to the previous flat sales forecast.
- Home Depot's stock has declined 9% year-to-date, underperforming the 8% appreciation of the S&P 500 and 1% of the XRT.
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