Home Depot’s sales dropped 2% during its latest quarter as consumers took on fewer major home projects.
“We did see continued pressure in certain big-ticket, discretionary categories,” Home Depot CEO Ted Decker said in a news release Tuesday.
Home Depot
(HD) is a closely watched barometer for the housing market.
Americans feel lousy about housing. Only 18% said it was a “good time to buy” according to July’s Home Purchase Sentiment Index from Fannie Mae, matching an all-time low. People continue to attribute the challenging housing conditions to high home prices and unfavorable mortgage rates.
Spending on home improvement during the pandemic – between 2020 and 2022 – grew at an outsized pace due to a combination of a home buying frenzy and people’s need for improved space as they stayed at home. Ample household balance sheets, plus price inflation in home improvement goods and services, boosted Home Depot and others.
But American consumers have recently dialed back on discretionary spending, including home improvement purchases.
The company stuck to its full-year guidance, expecting sales this year to decline up to 5% compared to last year.
Home Depot’s stock was flat during pre-market trading.
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