Home improvement retailer Home Depot slashed its full-year earnings outlook after another weak quarter, citing soft big-ticket spending, a paralyzed housing market, and lackluster seasonal demand. Adjusted EPS is now expected to fall 5%, worse than prior guidance.
Third-quarter comparable sales rose just .2%, far below Bloomberg Consensus estimates of 1.36%. The retailer warned about weak consumer demand as elevated interest rates discourage home buying and remodeling. As a result, consumers are opting for smaller projects rather than upgrading their patios or building new decks.
Snapshot of the third quarter with Bloomberg Consensus estimates:
So many projects, so little money.