Home Depot, after years of explosive growth, cuts its outlook as Americans cool spending on homes

By Michelle Chapman
The Capital Gazette
May 16, 2023
Category: Finance & Economics
Region: Canada, United States

After years of explosive growth during the pandemic, Home Depot’s revenue during the first quarter fell short of expectations and the company cut its profit and sales outlook for the year, sending shares skidding before the opening bell Tuesday. It was a rough start to a busy week of retail earnings and the numbers from the nation’s biggest home improvement chain dragged down retails stocks as well as the Dow. For the three months ended April 30, revenue dropped to $37.26 billion from last year’s $38.91 billion. Sales dropped 4.5%. …CEO Ted Decker said weak sales were mostly due to lumber deflation and bad weather, particularly in its Western division which had to contend with extreme weather in California. But the Atlanta company cut its expectations for the year with as shift in spending becomes more clear with the economy slowing and costs rising for builders and homeowners.

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