Home Depot Stock Slumps as Slowing U.S. Sales Growth Clouds Earnings Beat

2 months ago 14
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Publish date:Aug 17, 2021 6:05 AM EDT

Stronger same-store sales, arsenic good arsenic grounds quarterly revenues, item a coagulated 2nd 4th net study for the world's biggest location betterment retailer.

Home Depot  (HD) - Get Report posted stronger-than-expected 2nd 4th net Tuesday, arsenic good arsenic the highest gross tally connected record, arsenic the red-hot lodging marketplace bolstered location betterment spending. 

The banal traded sharply lower, however, arsenic same-store income maturation for its U.S. outlets slowed to 3.4% from past quarter's 29.9% tally.

Home Depot said net for the 3 months ending connected August 1, the company's fiscal 2nd quarter, were pegged astatine $4.53 per share, up 12.7% from the aforesaid play past twelvemonth and good up of the Street statement forecast of $4.43 per share. Group revenues, Home Depot said, roseate 8% to $41.1 billion, again topping analysts' estimates of a $40.73 cardinal tally.

Same store income were up 4.5% from past year, Home Depot said, conscionable up of the Refinitiv forecast of 4.25%, portion comparable income successful the U.S. were up 3.4%, a fig that fell good shy of Street forecasts. Average tickets, however, roseate 11.3% to $82.48 per trip, helping the wide gross summation adjacent amid the slowing home traffic.

"I americium precise arrogant of our associates, who proceed to show a relentless absorption connected serving our customers," said CEO Craig Menear. "As a effect of their efforts, we achieved a milestone of implicit $40 cardinal successful quarterly income for the archetypal clip successful Company history. I would similar to widen my sincere appreciation to our team, arsenic good arsenic our supplier and proviso concatenation partners, arsenic they proceed to run successful this dynamic and challenging environment."

Dow constituent Home Depot shares were marked 4.5% little successful pre-market trading instantly pursuing the net merchandise to bespeak an opening doorbell terms of $320.00 each.

Home betterment and homebuilding spending has been bolstered successful portion by a leap successful lodging starts, which roseate 6.3% successful June to an yearly complaint of 1.643 million.

However, sky-high lumber prices, the ongoing occupation shortage and assorted supply-chain disruptions pushed permits for caller operation to the lowest levels successful 8 months, according to the astir caller information from the Commerce Department. 

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