Home Depot Sees Lower Demand for Large Home Remodels
Home Depot reported first-quarter sales of $41.77 billion, surpassing analyst estimates despite a decline in large discretionary projects. The retailer maintained its annual forecast as persistent housing affordability issues and inflation pressures continue to weigh on consumer spending.
HOME DEPOT INC reported a 1.3% dip in customer transactions as high borrowing costs and inflation dampen demand for large-scale home renovations. The retailer maintained its annual forecast despite first-quarter earnings and revenue beating analyst expectations. This cautious outlook signals that the United States housing market remains a primary headwind for discretionary consumer spending.
### Large Projects Stalled by Affordability Home Depot shares fell 2% during the morning session after the company reiterated its guidance for flat to 2% comparable sales growth. While seasonal categories like patio furniture and portable power performed well, homeowners are delaying major remodels. Merchandising executive Billy Bastek said during the post-earnings call that larger discretionary projects remain under pressure.
