Home Depot (NYSE:HD) on Tuesday reported sales that missed analysts’ expectations, and it lowered its sales outlook for the year amid fears that the trade war will slow consumer spending.
Earnings per share, adjusted came in at $3.17 vs. $3.08 expected.
Revenue was $30.84 billion vs. $30.99 billion expected. Same-store sales exhibited 3% growth, compared to the expected 3.5% growth.
Net income for the quarter ended Aug. 4 was $3.48 billion, or $3.17 per share, compared with $3.51 billion, or $3.05 a share, a year ago. That beat expectations for earnings of $3.08 a share.
Sales climbed 1.2% to $30.84 billion from $30.46 billion a year ago, short of expectations for $30.99 billion.
Sales at Home Depot stores open for at least 12 months were up 3% overall and were up 3.1% in the U.S., short of expectations for growth of 3.5%.
"Today we are updating our 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," CEO Craig Menear said.
The Atlanta-based company previously warned about the toll a slump in lumber prices is taking on its business. Lumber futures are down roughly 16% since their highs in February, and lumber accounts for about 8% of Home Depot’s total sales.
Home Depot said in May that weak lumber prices hurt first-quarter sales growth by about $200 million. It added that if prices didn’t improve, it could dent annual sales by as much as an additional $600 million.
Shares in HD acquired $8.05, or 3.9%, to $8.05
