From Investing.com: 2024-11-12 07:53:08

Home Depot forecasts a smaller drop in annual same-store sales, boosted by demand from professional contractors and hurricane-related spending. Shares rose 2% in premarket trading as the top U.S. home improvement chain posted better-than-expected quarterly results. CEO Ted Decker noted increased engagement in seasonal goods and outdoor projects.

Hurricanes in southeastern U.S. led to panic-buying, with Hurricane Helene followed by Hurricane Milton. Home Depot has faced choppy demand due to inflation and borrowing costs, prompting customers to focus on repair and maintenance. Investors are keen on the post-earnings call for industry outlook after interest-rate cuts by the Federal Reserve.

The Fed’s rate cuts should boost demand for home renovation, benefiting Home Depot. Analysts caution against across-the-board tariffs that could spike prices. Home Depot has invested in appealing to professional customers, including a multi-billion dollar deal for SRS. Rival Lowe’s shares were up 1.2% before its upcoming quarterly report.

Home Depot’s comparable sales declined 1.3%, beating estimates, with earnings per share at $3.67. The company expects a 2.5% drop in comparable sales for fiscal year 2024, revised from a previous range of 3% to 4%. The rebound in demand signals a positive outlook for the industry amid potential economic challenges.



Read more at Investing.com: Home Depot expects smaller drop in 2024 sales as hurricane rebuild boosts quarter By Reuters