Home Depot sees sales growth despite challenges, raises full-year outlook

From CNBC: 2024-11-12 06:33:56

Home Depot’s quarterly sales increased over 6% year over year, benefiting from a newly acquired business and hurricane-related repairs. The retailer raised its full-year outlook, expecting total sales to rise about 4%, including the impact of acquiring SRS Distribution. Comparable sales are projected to decline about 2.5% for the 52-week period.

Chief Financial Officer Richard McPhail stated that consumers are delaying purchases due to cautiousness about the economy. Home Depot’s net income for the fiscal third quarter decreased, with revenue climbing 6.6%. Comparable sales fell 1.3% across the business, marking the eighth consecutive quarter of negative comparable sales.

Despite sales growth, Home Depot faces economic challenges due to higher interest rates affecting housing turnover. The company has pursued bigger business from home professionals to drive sales and recently acquired SRS Distribution. Price pressures may arise due to potential tariffs on imported goods, impacting retailers like Home Depot.

The holiday season and strong sales of decor items have boosted Home Depot’s revenue. The company offers a wide range of holiday decor, including oversized items like an 8-foot Santa Claus and a large animated reindeer. Home Depot’s giant outdoor decor has become popular nationwide, driving sales during the festive season.



Read more at CNBC:: Home Depot (HD) earnings Q3 2024