Home Depot cuts full-year sales outlook

Home Depot cut its full-year sales outlook on Tuesday as it said higher interest rates and macroeconomic uncertainty were putting pressure on consumer demand.

In results for the second quarter, the retailer said sales rose 0.6% on the same period a year earlier to $43.2bn. Comparable sales fell 3.3%, while comparable sales in the US were down 3.6%.

Net earnings for the quarter were $4.6bn, or $4.60 per diluted share, compared with $4.7bn, or $4.65 per diluted share, in the same period a year earlier.

President and chief executive Ted Decker said: "The underlying long-term fundamentals supporting home improvement demand are strong.

"During the quarter, higher interest rates and greater macro-economic uncertainty pressured consumer demand more broadly, resulting in weaker spend across home improvement projects. However, the team continued to navigate this unique environment while executing at a high level. I would like to thank our associates for their hard work and dedication to serving our customers and communities."

Home Depot now expects total sales for the year to increase between 2.5% and 3.5%, including the 53rd week. Meanwhile, comparable sales are seen declining by between 3% and 4% for the 52-week period compared to fiscal 2023. The retailer had previously forecast a decline of nearly 1%.