Home Depot Earnings Recap

During the pandemic, the lockdown orders boosted Home Depot (HD) as people turned their attention—and stimulus money—to DIY projects and fixes. Now, inflation and interest rates remain high, keeping people locked into their lower rates and less likely to move. However, the rising financial pressure is pushing these kinds of projects to the back burner. Home Depot saw customer transactions, comparable sales, and the average ticket fall year-over-year in the first quarter and reported a miss on revenue estimates. The company cited a lack of the aforementioned larger discretionary projects, but also blamed a late start to spring.

However, the company reaffirmed its full-year guidance, and CEO Ted Decker said Home Depot is still growing market share. The company also has yet to close on SRS Distribution, which it agreed to acquire for $18.25 billion in March, its biggest deal ever. SRS Distribution provides roofing materials and building supplies, which would allow Home Depot to push further into the contractors and professionals market. Overall, the market doesn’t seem unhappy with the report—shares are up slightly before the bell.

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