Home Depot reported lower-than-expected earnings for the quarter. Total revenue was $43.18 billion, falling short of an expected $43.79 billion. Adjusted earnings per share came in at $4.67, lower than a projected $4.52 earnings per share.
The home improvement retailer had fewer customers this past quarter, with foot traffic dropping by 1.8% while the average ticket declined by 1.3%. Same-store sales slumped by 3.3%, suggesting that repeat customers were fewer. This is a larger decline than the 2.39% drop that Wall Street analysts expected.
High interest rates and rising costs causing price pressures to consumers drove revenue down, Home Depot claimed. Still, the retailer expects to make a financial turnaround going forward. “The underlying long-term fundamentals supporting home improvement demand are strong. During the quarter, higher interest rates and greater macro-economic uncertainty pressured consumer demand more broadly, resulting in weaker spend across home improvement projects,” the company noted.
Despite its underwhelming quarterly performance, Home Depot decided to raise its fiscal 2024 outlook. It expects sales to rise by 2.5% to 3.5% on an annual basis, up from a previous outlook of a 1% rise.