Retailer The Home Depot (HD) has posted mixed financial results for this year’s third quarter and lowered its full-year profit forecast as it struggles with weak consumer demand.
The Atlanta, Georgia-based company reported earnings per share (EPS) of $3.74 U.S., which was below the $3.84 U.S. expected on Wall Street.
Revenue in the period totaled $41.35 billion U.S., which was above the consensus expectation that called for $41.11 billion U.S. in sales.
This marked the third consecutive quarter that Home Depot missed Wall Street’s earnings expectations.
Management blamed the mixed results on weak home improvement demand, tepid consumer spending, and lower than usual storm damage that needed repairs.
Average ticket, the amount spent by customers at the store, rose 1.8% year-over-year in the quarter. However, customer transactions fell 1.6% from a year ago.
A bright spot were online sales, which rose 11% year-over-year in Q3.
In terms of guidance, the home improvement retailer said it now expects full-year sales to rise about 3% and comparable sales to be “slightly positive.”
That outlook compares to previous guidance that called for full-year sales to grow 2.8% and comparable sales to increase by 1%.
The revised outlook includes an estimated $2 billion U.S. in revenue from GMS, a building-products distributor that Home Depot bought earlier this year.
However, management at Home Depot said they expect full-year earnings per share to decline by about 5% from a year ago compared to prior expectations that they would drop 2%.
The main problem for Home Depot continues to be a weak U.S. housing market.
Housing sales typically result in home improvement projects as people fix-up their house either before or after moving.
Unfortunately, those projects have dropped off as higher interest rates have led to steeper mortgage rates and loans, leading homeowners to put off a kitchen remodel or house addition.
HD stock has declined 8% this year to trade at $358.03 U.S. per share.
