Please ensure Javascript is enabled for purposes of website accessibility

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

5 hours ago

‘Reservoir Dogs’ and ‘Kill Bill’ Actor Michael Madsen Dies at 67

6 hours ago

Eyeing Arctic Dominance, Trump Bill Earmarks $8.6 Billion for US Coast Guard Icebreakers

6 hours ago

Trump’s Sweeping Tax-Cut and Spending Bill Wins Congressional Approval

7 hours ago

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

10 hours ago

US Supreme Court to Decide Legality of Transgender School Sports Bans

11 hours ago

Nvidia Set to Become the World’s Most Valuable Company in History

11 hours ago

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

11 hours ago
Home Depot Expects Profits to Fall in Shift Away From Home Spending
gvw_ap_news
By Associated Press
Published 2 years ago on
May 16, 2023

Share

Getting your Trinity Audio player ready...

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, and it was short of the $38.45 billion projected by analysts polled by Zacks Investment Research.

Sales at stores open at least a year, a key indicator of a retailer’s health, dropped 4.5%, and it dropped 4.6% for stores in the U.S.

“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,” said CEO Ted Decker.

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.

The U.S. Federal Reserve has hiked benchmark interest rates 10 consecutive times with hopes of slowing the economy and cooling inflation.

The U.S. economy slowed sharply from January through March, decelerating to just a 1.1% annual pace as higher interest rates hammered the housing market and businesses reduced their inventories. An estimate from the Commerce Department last month showed that the nation’s gross domestic product — the broadest gauge of economic output — weakened after growing 3.2% from July through September and 2.6% from October through December.

Expects Profits to Slip

Home Depot cautioned in February that it expected profits to slip this year. The chain saw remarkable growth over the past three years, as many people hunkered down at home or were searching for a new home during the pandemic. Americans spent heavily on home renovations and other projects.

With the easing of the pandemic, Americans began to spend on things that had faded in recent years, like dinners out and vacations.

Home Depot earned $3.87 billion, or $3.82 per share, in the quarter. A year earlier it earned $4.23 billion, or $4.09 per share. That was better than the per-share earnings of $3.80 that industry analysts were expecting.

Home Depot Inc. now expects sales and same-store sales to decline between 2% and 5% this year. Several months ago, the company said it expected sales to be flat compared with 2022.

The chain now expects full-year earnings to fall between 7% and 13%, expanding the potential decline from earlier expectations that the retreat would remain solidly in the single-digit percentage range.

Shares dropped more than 3% before the market open on Tuesday.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Fresno Crash Involving Unlicensed Teen Driver Sends Woman to Hospital

DON'T MISS

Madre Fire Burns More Than 52,000 Acres in San Luis Obispo County

DON'T MISS

RIP John Harris: Fresno County Rancher, Racehorse Breeder Was a Visionary Leader Who Leaves a ‘Profound Legacy’

DON'T MISS

Valadao, Costa Spar on What Passage of Trump’s Bill Means for Medicaid Recipients

DON'T MISS

US Military Says 200 Marines Being Sent to Support ICE in Florida

DON'T MISS

Boeing Secures $2.8 Billion US Satellite Contract

DON'T MISS

Kaweah Health Names Its New Chief Nurse. She’s From Texas

DON'T MISS

Clovis Police Say At-Risk Missing Woman Found Dead in Mariposa County

DON'T MISS

Over 100 Former Senior Officials Warn Against Planned Staff Cuts at US State Department

DON'T MISS

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

UP NEXT

Trump Administration Will Focus on Fed Chair Replacement in Fall, Bessent Says

UP NEXT

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

UP NEXT

Nvidia Set to Become the World’s Most Valuable Company in History

UP NEXT

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

UP NEXT

Del Monte Files for Bankruptcy. Gets Nearly $1B to Keep Producing Through Process

UP NEXT

Wall Street Edges Down After ADP Shock. Focus on Trade Talks, Payrolls Data

UP NEXT

Dollar Gains Ground Against Major Peers After Better-Than-Expected US Jobs Data

UP NEXT

Powell Reiterates Fed Will Wait for More Data Before Cutting Rates

UP NEXT

US Senate Republicans Struggling to Unite on Trump’s $3.3 Trillion Tax-Cut Bill

UP NEXT

S&P 500, Nasdaq Close at Record Highs, Cap Best Quarter in Over a Year

Valadao, Costa Spar on What Passage of Trump’s Bill Means for Medicaid Recipients

4 hours ago

US Military Says 200 Marines Being Sent to Support ICE in Florida

4 hours ago

Boeing Secures $2.8 Billion US Satellite Contract

4 hours ago

Kaweah Health Names Its New Chief Nurse. She’s From Texas

4 hours ago

Clovis Police Say At-Risk Missing Woman Found Dead in Mariposa County

4 hours ago

Over 100 Former Senior Officials Warn Against Planned Staff Cuts at US State Department

5 hours ago

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

5 hours ago

‘Reservoir Dogs’ and ‘Kill Bill’ Actor Michael Madsen Dies at 67

6 hours ago

Fresno Police Recover Some of the $40,000 in Fireworks Stolen From Bullard High Team

6 hours ago

Eyeing Arctic Dominance, Trump Bill Earmarks $8.6 Billion for US Coast Guard Icebreakers

6 hours ago

Fresno Crash Involving Unlicensed Teen Driver Sends Woman to Hospital

A two-vehicle collision sent a woman driving one of the vehicles to the hospital with a head injury Thursday afternoon in Fresno. Fresno pol...

2 hours ago

A crash causes a traffic jam in northwest Fresno on Thursday, July 3, 2025. (GV Wire/Paul Marshall)
2 hours ago

Fresno Crash Involving Unlicensed Teen Driver Sends Woman to Hospital

The Madre Fire near New Cuyama has burned 52,593 acres with 5% containment, prompting evacuation orders in several San Luis Obispo County zones as of Thursday, July 3, 2025, afternoon. (CalFire)
3 hours ago

Madre Fire Burns More Than 52,000 Acres in San Luis Obispo County

3 hours ago

RIP John Harris: Fresno County Rancher, Racehorse Breeder Was a Visionary Leader Who Leaves a ‘Profound Legacy’

4 hours ago

Valadao, Costa Spar on What Passage of Trump’s Bill Means for Medicaid Recipients

An ICE agent talks with migrants about their scheduled appointments with U.S. Immigration and Customs Enforcement (ICE) on Father’s Day, to learn about their immigration status, in Chicago, Illinois., U.S., June 15, 2025. (Reuters File)
4 hours ago

US Military Says 200 Marines Being Sent to Support ICE in Florida

Boeing logo and miniature satellite model are seen in this illustration taken, March 10, 2025. (Reuters File)
4 hours ago

Boeing Secures $2.8 Billion US Satellite Contract

4 hours ago

Kaweah Health Names Its New Chief Nurse. She’s From Texas

Clovis Police are searching for Pathmani Goonawardena, 82, who went missing nearly three weeks ago and was last seen driving a white Volvo near Copper and Auberry, possibly en route to Coarsegold. (CHP)
4 hours ago

Clovis Police Say At-Risk Missing Woman Found Dead in Mariposa County

Help continue the work that gets you the news that matters most.

Search

Send this to a friend