Home Depot Inc on Tuesday missed Wall Street estimates for U.S. same-store sales for the first time in seven quarters, as the pandemic-driven surge in demand for do-it-yourself home-improvement products waned.
The Atlanta, Georgia-based company’s shares, which have gained more than 26% this year, fell 4.9% in pre-market trading.
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Home-improvement chains had a blockbuster 2020 as revenue and profit surged from stuck-at-home Americans splurging on paint, tools, and gardening equipment to upgrade their living spaces through DIY projects.
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The steady rollout of COVID-19 vaccines, however, prompted more Americans to return to outdoor activities and abandon some pandemic-induced shopping habits.
U.S. same-store sales at Home Depot climbed 3.4% in the second quarter ended Aug. 1 – the smallest increase in two years, while analysts had expected an increase of 4.9%, according to IBES data from Refinitiv.
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Overall net sales rose 8.1% to $41.12 billion, beating estimates of $40.79 billion.
Net earnings in the reported quarter rose 11% to $4.81 billion. The home-improvement retailer earned $4.53 on a per-share basis, beating estimates of $4.44 per share.
(Reporting by Uday Sampath in Bengaluru; Editing by Sherry Jacob-Phillips)
View more information: https://www.foxbusiness.com/markets/home-depots-us-sales-slow-consumer-demand-wanes