Home Depot Inc. (NYSE:HD) has reported a decline in earnings, signaling a noticeable pullback in consumer spending on home improvement projects. The subdued quarterly results reflect a decrease in do-it-yourself initiatives which surged during the pandemic. CEO Ted Decker noted that the quarter’s performance was adversely affected by a delayed onset of spring and a downtrend in larger discretionary projects.
On Tuesday, the retailer announced a revenue of $36.42 billion, slightly below the $36.66 billion anticipated by Wall Street analysts, marking a 2.3% decline from last year’s $37.26 billion. However, Home Depot’s adjusted earnings per share slightly exceeded expectations, coming in at $3.63 versus the forecasted $3.60.
The report also highlighted a decrease in-store visits and lower expenditure per visit. Both foot traffic and average ticket sizes decreased by 1% and 1.3% respectively, contributing to a 2.8% drop in same-store sales. This downturn reflects a broader trend of consumer restraint, as individuals curtail spending on home improvement amid wider economic uncertainties.
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