Home Depot's Sales and Consumer Spending

SOURCE www.cnn.com
Home Depot lowers sales expectations due to consumers spending less on major home renovation projects amid higher interest rates and economic uncertainty.

Key Points

  • Consumers spending less on home improvement projects due to higher interest rates and economic uncertainty.
  • Shift from purchasing physical goods to experiences has impacted Home Depot's sales.
  • Home Depot made its largest acquisition ever by buying SRS Distribution for $18.3 billion.

Pros

  • Home Depot is a bellwether of consumer spending and the housing market.
  • The underlying long-term fundamentals supporting home improvement demand are strong.

Cons

  • Sales at stores open at least a year dropped 3.6% last quarter.
  • Expecting sales at stores open at least 12 months to fall between 3% and 4% this year.