Weaker-than-expected results weigh on Home Depot

Fourth-quarter net earnings per share came in at $2.09, up on the $1.52 seen in the same period a year earlier but marginally below analyst expectations. Comparable sales, which strip out the impact of new store openings, rose 3.2%. Wall Street had been looking for growth of as much as 4.5%. Comparable sales in US stores were ahead 3.7%.

Full-year net sales were $108.2bn, ahead 7.2%, with underlying sales up 5.2%, while earnings per diluted share were $9.73, a 33.5% increase on the previous year.

The rising cost of homes in the US has curtailed the country's housing market, which in turn is affecting demand across the home improvement and construction sectors.

The world’s biggest DIY chain also said net earnings across 2018 had been impacted by a non-recurring impairment charge of approximately $247m linked to Interline Brands, its distribution business.

Looking forward, chairman and chief executive Craig Menear said: “Our view on the health of the economy and the consumer, as well as the momentum of our strategic investments, supports our belief that we can deliver comparable sales growth of 5% in fiscal 2019.”

Home Depot also predicted diluted earnings per share growth of around 3.1%, to $10.03.

Shares in Home Depot lost 3% in pre-market trading.