"Home Depot is grappling with a deep funk in the housing market, which is "disproportionately impacting home improvement demand" as homeowners delay projects and wait out economic uncertainty, its CEO Ted Decker said during the company's third-quarter earnings call Tuesday. The Atlanta-based retailer missed Wall Street expectations for the third consecutive quarter, posting net income of $3.6 billion, or $3.62 per share, compared with $3.65 billion, or $3.67 per share, a year earlier."
"While total revenue rose to $41.4 billion from $40.2 billion, the increase was largely attributable to approximately $900 million in sales from its recent acquisition of GMS Inc., a specialty building products distributor. Without that acquisition, total sales were essentially flat. Comparable sales, a key metric tracking performance at stores open at least a year, increased just 0.2% in the quarter, with U.S. comparable sales edging up only 0.1%."
Home Depot posted third-quarter net income of $3.6 billion, or $3.62 per share, down from $3.65 billion, or $3.67 per share a year earlier, while total revenue rose to $41.4 billion from $40.2 billion largely due to about $900 million in sales from the GMS Inc. acquisition. Comparable sales rose 0.2% overall and 0.1% in the U.S., with customer transactions down 1.4% and average ticket up to $90.39. Executives cited a stagnant housing market, homeowner hesitation amid declining home prices and job concerns, and a lack of storms reducing demand for roofing and related products.
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