Why did Home Depot's earnings miss expectations?

Home Depot's earnings missed expectations due to a lack of storms driving sales and continued pressure from a weak housing market.

What is Home Depot's new profit outlook?

Home Depot now anticipates its adjusted earnings per share to fall about 5% year-over-year, a decrease from the previously expected 3% drop.

How is the housing market affecting Home Depot?

A sluggish and uncertain housing market is disproportionately impacting home improvement demand, contributing to Home Depot's weaker financial results.

Home / Business and Economy / Home Depot Earnings Drop: Blame the Weather!

Home Depot Earnings Drop: Blame the Weather!

20 Nov

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Summary

Home Depot's quarterly earnings missed expectations significantly.
A lack of storms and a weak housing market hurt sales.
The company lowered its full-year profit forecast.

Home Depot Earnings Drop: Blame the Weather!

Home Depot's recent quarterly earnings fell short of analyst expectations, prompting a significant dip in its stock value. The company attributed this performance primarily to an unusual lack of seasonal storms, which typically drives demand for weather-related products, and ongoing weakness within the housing market.

Despite revenue figures exceeding projections, comparable store sales saw only a modest increase of 0.2%, a stark contrast to the anticipated 1.4% growth. CEO Ted Decker acknowledged that consumer uncertainty and housing pressures are disproportionately impacting home improvement demand, a factor that also contributed to the missed expectations.

While Home Depot revised its full-year sales forecast upward to approximately 3% growth, it simultaneously reduced its projected adjusted earnings per share, now anticipating a 5% year-over-year decrease. Analysts suggest these results may indicate similar challenges for rival Lowe's, which is expected to report its earnings soon.