Home Depot on Tuesday posted quarterly revenue below Wall Street’s expectations, as shoppers postponed bigger discretionary projects like bath and kitchen remodels because of higher interest rates and made spring purchases late.
Still, the home improvement retailer reaffirmed its full-year guidance, which includes an additional week from the prior year.
It said it expects total sales to grow about 1% in fiscal 2024, including those extra days. However, the retailer said it anticipates comparable sales, which take out the impact of store openings and closures, to decline about 1%, excluding that additional week.
In an interview with CNBC, Chief Financial Officer Richard McPhail said customers are in a waiting game that began in the second half of last year, as they responded to mortgage rates climbing. He said the company anticipated those trends would continue.
“The home improvement customer is extremely healthy from a financial perspective,” he said.
“And so it’s not the case of not having the ability to spend. What they tell us is they’re just simply deferring these projects as given higher rates, it just doesn’t seem the right moment to execute.”
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Author: Paul Bedard
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