Home Depot Lowers Sales Outlook, Shares Fall
19 November 2019 - 11:11PM
Dow Jones News
By Patrick Thomas
Home Depot Inc. lowered its sales forecast for the year on
Tuesday as the company reported higher fiscal third-quarter
revenue, but fell short of Wall Street expectations.
Sales at the Atlanta company rose 3.5% from a year ago to $27.22
billion, slightly lower than the $27.53 billion Wall Street was
expecting, according to FactSet.
Same-store sales were up 3.6% for the period, below the 4.7%
analysts were expecting.
Shares of the company were off about 5.8% during premarket
trading. The company's stock is up about 39% this year.
The home-improvement retailer reported net income of $2.77
billion, or $2.53 a share for the period ended Nov. 3, compared
with $2.87 billion, or $2.51 a share, a year ago. Analysts surveyed
by FactSet were expecting earnings of $2.52 a share.
The number of customer transactions was up 1.5% from a year ago,
while the amount of money customers spent per visit rose 1.9%.
The home-improvement retailer said it expects fiscal 2019 sales
growth to increase by 1.8%, down from its previous guidance of
2.3%. Same-store sales are projected to grow by about 3.5%, lower
than its previous forecast of 4%.
"Sales were below our expectations driven by the timing of
certain benefits associated with our One Home Depot strategic
investments," Chief Executive Craig Menear said in a press
release.
Write to Patrick Thomas at Patrick.Thomas@wsj.com
(END) Dow Jones Newswires
November 19, 2019 06:56 ET (11:56 GMT)
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