Home Depot (HD) shares slide on Q4 comparable sales dip

Home Depot (NYSE: HD) has posted a shallower-than-anticipated dip in fourth-quarter comparable sales, bringing a close to a year that the DIY retail giant described as one of "moderation."

Retail chains have been hit by a pullback in spending on big-ticket items as cost-conscious consumers grapple with elevated interest rates and high inflation. Home Depot, in particular, has seen shoppers rein in expenditures on major property improvements, opting instead to focus on smaller and cheaper projects.

Comparable sales in the three months ended on Jan. 28 fell by 3.5%, deeper than a drop of 0.3% registered in the same period in the previous year. However, analysts had called for a fall of 3.63%, according to Bloomberg consensus estimates.

Net earnings, meanwhile, came in at $2.8 billion, translating to $2.82 per diluted share.

For the 2023 fiscal period, Home Depot reported net sales of $152.67B, a 3% decrease compared to the prior year, while diluted earnings per share dipped by 9.5% to $15.11. The figures were roughly in line with an annual sales and earnings outlook range that Home Depot narrowed in November.

Shares in the company were lower in premarket U.S. trading on Tuesday.

You May Also Be Interested In

• Micron surges 5.5% on blockbuster Anthropic AI deal ahead of earnings
• Goldman reinstates Estee Lauder rating, sees turnaround driving growth and margins
• Assurant (AIZ) is Piper Sandler's Weekly Focus Idea