The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
BLOOMBERG
Home Depot Inc earnings exceeded the average analyst estimate, suggesting that US home improvement spending is performing slightly better than expected following an unprecedented boom during the pandemic.
Earnings per share were $4.65 on a diluted basis in the second quarter, above the average estimate compiled by Bloomberg. Comparable sales, another key metric, fell 2% in the quarter, a smaller decline than analysts foresaw.
“While there was strength in categories associated with smaller projects, we did see continued pressure in certain big-ticket, discretionary categories,” Chief Executive Officer Ted Decker said in a statement. “We remain very positive on the medium-to-long term outlook for home improvement.”
The board approved a $15 billion buyback program, replacing its previous authorisation. Home Depot reaffirmed its fiscal 2023 guidance.
Shares were little changed in pre-market trading in New York.
In May, Home Depot cut its outlook for the full year, citing a bad start to 2023 due to lumber deflation and poor weather that delayed or curbed purchases. The retailer said that it still expects comparable sales to decline as much as 5% this fiscal year.