Plus   Neg

Home Depot Lowers FY19 Sales Guidance On Continued Lumber Price Deflation

The Home Depot (HD), a home improvement retailer, updated its guidance for fiscal 2019, a 52-week year. The company now projects sales to grow by approximately 2.3 percent and comp sales to be up approximately 4.0 percent. In May, the company projected fiscal 2019 sales to grow by approximately 3.3 percent and comp sales to be up approximately 5.0 percent. However, the company reaffirmed its earnings-per-share growth guidance for fiscal 2019.

"Lumber prices have declined significantly compared to last year, which impacts our sales growth. As a result, we updated sales guidance to account primarily for continued lumber price deflation, as well as potential impacts to the U.S. consumer arising from recently announced tariffs," said Craig Menear, CEO.

For the second quarter, earnings per share increased 3.9 percent to $3.17 from prior year. On average, 28 analysts polled by Thomson Reuters expected the company to report profit per share of $3.08, for the quarter. Analysts' estimates typically exclude special items.

Second-quarter sales were $30.8 billion, up 1.2 percent from a year ago. Comparable sales were positive 3.0 percent, and comparable sales in the U.S. were positive 3.1 percent. Analysts expected revenue of $30.98 billion for the quarter.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The National Retail Federation or NRF said that conflicting economic data amid a resurgence in coronavirus cases has made it difficult to predict how steadily the U.S. economic recovery will continue. NRF Chief Economist Jack Kleinhenz noted that based on quarterly and monthly data, the U.S. economic recovery is continuing despite the elevated COVID-19 cases. Ford Motor Company (F) announced that Jim Hackett plans to retire as President and CEO. He will continue as a special advisor to the company through March of 2021. The company has named Jim Farley as new president and CEO. He will join the board of directors, effective Oct. 1. Farley joined Ford in... Google parent Alphabet Inc. has issued $5.75 billion in sustainability bonds, becoming the largest green or sustainability bonds issued by a company until now. This is part of a $10 billion debt offering. Alphabet said the proceeds will be used to fund projects that are environmentally or socially responsible.
Follow RTT