Home Depot's 2020 Guidance Disappoints -- Update
11 Décembre 2019 - 07:31PM
Dow Jones News
By Allison Prang and Colin Kellaher
Home Depot Inc. on Wednesday forecast same-store sales for the
next fiscal year that were below Wall Street's expectations as the
company waits to see investments in its supply chain, stores and
digital offerings pay off.
For fiscal 2020, Home Depot said it expects total sales and
comparable sales to rise by 3.5% to 4%. Analysts polled by FactSet,
on average, were expecting same-store sales growth of 4.3%.
The Atlanta home-improvement retail giant has missed same-store
sales expectations for the last four fiscal quarters, according to
FactSet, and hasn't reported annual same-store sales below 4% since
fiscal-year 2012.
Home Depot's disappointing outlook comes not long after the
company lowered its sales expectations for the current fiscal
year.
Home Depot is gaining market share, company executives said
during an investor presentation Wednesday. The company's
expectations for sales and earnings reflect slowing economic growth
and a housing market that is "stable and growing, albeit at a more
tempered pace than in recent years," a spokeswoman said.
The company has been working on revamping its supply chain to
deliver products to customers faster.
Chief Executive Craig Menear had said on the company's earnings
call in November that it was taking longer than expected for some
of the company's strategic plans to show results.
In prepared remarks Wednesday, Mr. Menear expressed confidence
in the company's plan, saying it would address customer needs.
One of the keys for Home Depot is whether the company can make
investors confident that growth could improve in the next fiscal
year, Credit Suisse said in a note Wednesday. Home Depot also needs
to reassure investors that its investments will lead to growth and
are on target, the analysts said.
"We did feel like a reset was needed here," Credit Suisse said,
noting the company's guidance for the current fiscal year was "more
aggressive."
The company said it still expects fiscal 2019 sales to rise
about 1.8%, with comparable sales on a 52-week basis up about 3.5%.
It also backed its full-year earnings forecast of $10.03 a
share.
Shares were down 4% midday Wednesday.
Write to Allison Prang at allison.prang@wsj.com and Colin
Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
December 11, 2019 13:16 ET (18:16 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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