Home Depot faces challenges in a sluggish housing market, impacting home improvement demand. Q3 earnings fell short of Wall Street’s expectations, with net income at $3.6 billion and revenue at $41.4 billion, boosted by a recent acquisition. Comparable sales rose marginally, but storms and lower demand affected results. CFO cites housing market woes and job concerns as major factors in the slowdown.

The U.S. housing market experiences record stagnation, with low home turnover rates and mortgage rates stuck between 6-7%. Home Depot customers show a “deferral mindset,” delaying major renovations. The retailer adjusts its fiscal 2025 outlook downward, anticipating a decline in earnings per share. Stock prices have declined over the past week and year to date.

Morgan Stanley’s survey reveals that over 60% of homeowners have mortgage rates below 4.5%. Home Depot customers are postponing larger renovation projects while engaging in smaller cash-funded ones. The company’s weak performance is attributed to external factors like consumer spending choices. Stock prices have tumbled in recent days.

Read more at Yahoo Finance: Home Depot blames its recent sales slump on a major funk in the housing market: ‘Our customers are homeowners’