Home Depot Lowers Sales Outlook, Shares Fall -- Update
19 Novembre 2019 - 7:43PM
Dow Jones News
By Patrick Thomas
Home Depot Inc.'s third-quarter results fell short of Wall
Street expectations, as the expected benefits of an online overhaul
are taking longer than planned to materialize.
The home-improvement retailer trimmed its sales forecast for the
year and now expects fiscal 2019 sales growth to increase by 1.8%,
down from its previous guidance of 2.3%. Same-store sales are
projected to grow by about 3.5%, lower than its previous forecast
of 4%.
Third-quarter sales at the Atlanta company rose 3.5% from a year
ago to $27.22 billion, slightly lower than the $27.53 billion Wall
Street was expecting, according to FactSet. Sales at stores open at
least a year were up 3.6% for the period, below the 4.7% analysts
were anticipating.
Home Depot and its followers were betting in the latest quarter
that its investments in technology to better align its online
business with its 2,290 brick-and-mortar stores would have resulted
in greater sales gains. The company now says that it is going to
take more time.
"Our sales performance was below our expectations," Chief
Executive Craig Menear said on a call with analysts. "Our rollout
is largely on track and we are realizing benefits, it's just taking
a little longer than our original assumptions."
Shares of the company were off about 5% to $226.43. The
company's stock has rallied more than 30% this year.
Finance Chief Richard McPhail said in an interview that while
the company is taking its time with its re-engineering efforts,
overall consumer spending is still healthy. "The consumer is alive
and well," he said. "It was one of the most balanced quarters we've
had in a long time."
The number of customer transactions during the third quarter was
up 1.5% from a year ago, while the amount of money customers spent
per visit rose 1.9%. Big-ticket transactions, or the number of
comparable transactions over $1,000, climbed 4.8% from a year
earlier.
Lower lumber prices continued to weigh on the company in the
third quarter, resulting in about $175 million in lost revenue from
a year ago, Mr. McPhail said. In August, the company reported
weaker than expected second-quarter results and cut its sales
outlook as a result.
"The numbers are much stronger than last quarter's rather anemic
growth which shows both that Home Depot is returning to a better
trajectory and, most importantly, that the consumer economy is not
in a state of distress," said Neil Saunders, a managing director of
GlobalData Retail, a research firm.
Overall, the company posted net income of $2.77 billion, or
$2.53 a share for the period ended Nov. 3, compared with $2.87
billion, or $2.51 a share, a year ago. Analysts surveyed by FactSet
were expecting earnings of $2.52 a share.
Write to Patrick Thomas at Patrick.Thomas@wsj.com
(END) Dow Jones Newswires
November 19, 2019 13:28 ET (18:28 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Home Depot (NYSE:HD)
Graphique Historique de l'Action
De Mar 2024 à Avr 2024
Home Depot (NYSE:HD)
Graphique Historique de l'Action
De Avr 2023 à Avr 2024