Three-year robust sales run ends amid pull back on home improvements
Home Depot couldn’t keep its protracted robust sales streak going any longer. The home improvement chain reported a dismal quarter as consumer spending on home improvement projects – which was buoyed by the stay-at-home pandemic lifestyle – come to a screeching halt.
The retailer posted disappointing sales for its first quarter and lowered its outlook for the year after customers slowed their spending. Home Depot (HD) said sales fell 4.5% at stores open at least a year during its latest quarter, and its income decreased 6.4% from the same stretch a year ago.
Total revenue for the quarter slipped 4.2% versus a year ago, to $37.3 billion. The retailer also cited falling lumber prices and weather-related challenges, including heavy rains in California during the period, for denting its sales.
“After a three-year period of unprecedented growth for our sector, during which we grew sales by over $47 billion, we expected that fiscal 2023 would be a year of moderation for the home improvement market,” Home Depot CEO Ted Decker said Tuesday.
The company also lowered its sales expectations for the year. It expects sales to decline between 2% and 5% in 2023 from a year prior.
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