The Home Depot on Tuesday reported first quarter net sales fell 4.2% to $37.3 billion from a year ago, while comparable sales fell 4.5%. Net earnings slid 8.5% year over year to $3.9 billion versus $4.2 billion last year.
CEO Ted Decker said sales for the quarter “were below our expectations primarily driven by lumber deflation and unfavorable weather.” Decker described the retailer’s short-term outlook as “uncertain” but said the medium- to long-term outlook for the home improvement sector is “very positive.”
In updated guidance, Home Depot said it now expects sales and comp sales to decline between 2% and 5% year over year, compared to its previous guidance of flat sales and comps. The company will also see an operating margin rate between 14% and 14.3% (compared to 14.5% previously projected), along with interest expenses of about $1.8 billion.Retail Dive