HomeIndustriesHome Depot Falls Short on Q1 Revenue Estimates, Beats Profit Forecast

Home Depot Falls Short on Q1 Revenue Estimates, Beats Profit Forecast

Home Depot released its fiscal first quarter 2023 earnings results on Tuesday, narrowly missing its revenue forecast while edging out forecasts for its adjusted earnings per share.

Revenue for the quarter was $37.3 billion, a 4.2% decline from the first quarter of last year. The retail giant marginally missed out on Wall Street estimates of $38.34 billion. Adjusted earnings per share were $3.82, thereby beating an expected $3.80 per share.

Same-store sales for the quarter were down 4.5% compared to the same period last year, significantly outpacing an expected decline of 1.42%. In the U.S. alone, same-store sales declined by 4.6%, compared to an estimated 2.14% decline.

Home Depot CFO Richard McPhail revealed that the company would be adjusting its earnings outlook for the year. “Given the negative impact to first quarter sales from lumber deflation and weather, further softening of demand relative to our expectations, and continued uncertainty regarding consumer demand, we are updating our guidance to reflect a range of potential outcomes,” McPhail announced.

Shares in the company fell by 4% during premarket trading on Tuesday. The company’s shrinking revenue is largely attributed to the cooldown in home improvement following the conclusion of the pandemic.

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