Home Depot Shares Slide On Weak Sales, Annual Profit Forecast
Phoenix, United States - August 25, 2011: The Home Depot operates home improvement and construction retail stores in the United States, Canada, Mexico, and other countries. It is the United States' largest home improvement retailer and fourth largest general retailer.
Home Depot Inc (NYSE:HD) forecast annual profit below Wall Street expectations on Tuesday, hurt by higher supply chain costs amid weakening demand for home improvement products due to inflation. The No. 1 U.S. home improvement chain also missed fourth-quarter comparable sales estimates, sending its shares down 2.5% to $310 in premarket trading. The company said it expects earnings per share to decline in the mid-single digits percentage range for 2023, while analysts were expecting a 0.4% increase to $16.72, according to Refinitiv data. Comparable sales fell 0.3% in the fourth quarter compared with analysts’ average estimate of a 0.56% increase. The company said it was planning to invest an additional $1 billion in annualized compensation for its frontline, hourly associates, starting from the first quarter of 2023.
