"Our customers are telling us that they're not investing certainly in large projects and that has everything to do with consumer confidence and sentiment, jobs' picture, overall price levels, and affordability in the economy."
"Fourth quarter net earnings fell about 13%, to $2.6 billion, compared to the same period last year. Decker said that the decrease was driven by home prices and housing turnover, which is at a historical low, and as significantly reduced demand for projects and other purchases associated with buying and selling a home."
"What may drive us to the lower end of the [price] range would be the market's not performing as well. Consumer uncertainty would be the number one driver."
Home Depot is experiencing significant headwinds from a stalled housing market, with customers postponing home improvement projects. Fourth quarter net earnings declined approximately 13% to $2.6 billion compared to the prior year, driven by reduced home prices, historically low housing turnover, and diminished demand for purchases associated with buying and selling homes. CEO Ted Decker attributed the slowdown to consumer uncertainty regarding jobs, affordability, and overall economic conditions. The company expects modest sales growth of 2.5% to 4.5% in fiscal 2025 and plans to open 15 new stores. Management is considering lower pricing strategies if market conditions continue deteriorating, as decreased home affordability could increase customer price sensitivity.
#housing-market-decline #consumer-confidence #retail-sales-performance #home-improvement-demand #economic-uncertainty
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