Home Depot faces declining sales in 2024 due to inflation and delayed spring start

Welcome to Extreme Investor Network, where we bring you the latest updates and insights on all things finance. Today, let’s dive into the recent news surrounding Home Depot’s first-quarter sales performance.

In the first quarter, Home Depot, the nation’s largest home improvement retailer, saw a 2.3% decrease in sales, totaling $36.42 billion. This decline was attributed to various factors such as high mortgage rates, higher inflation impacting customer spending, and a delayed start to spring. Despite the decline in sales, the company’s earnings of $3.6 billion, or $3.63 per share, exceeded Wall Street expectations.

Customer transactions also dipped by 1% in the quarter, with shoppers spending an average of $90.68 per receipt compared to $91.92 the previous year. Additionally, sales at stores open at least a year, a crucial metric for retailers, declined by 2.8% globally and 3.2% in the U.S.

Related:  Tyson Foods Faces Backlash Over Progressive Stance

Last week, the average rate on a 30-year mortgage saw a slight decrease, providing some relief for home shoppers facing escalating housing prices and limited inventory. Rising mortgage rates can significantly impact borrowers, adding hundreds of dollars to monthly costs and affecting affordability for homebuyers.

Despite the challenging sales environment, Home Depot maintained its fiscal full-year forecast for total sales growth of about 1%, inclusive of a 53rd week. The company anticipates same-store sales to decrease by approximately 1% for the 52-week period.

As the financial landscape continues to evolve, staying informed about market trends and company performances is crucial for investors. Follow Extreme Investor Network for more in-depth analysis and expert insights to help you navigate the world of finance effectively.

Related:  Charts show buying opportunity in biotech stock due to recent pullback

Source link