Home Depot says core shopper is resilient in the face of higher gas prices, sales rise 5%
Home Depot reported a 5% increase in sales, attributing this growth to the resilience of its core homeowner shoppers despite economic challenges. The company reaffirmed its full-year guidance, indicating confidence in its financial outlook. However, shoppers are still deferring larger project spending due to ongoing economic uncertainty and geopolitical tensions.
- ▪Home Depot's earnings per share for the fiscal first quarter was $3.43, slightly above expectations.
- ▪Sales rose to $41.77 billion, compared to $39.86 billion a year earlier.
- ▪The company is focusing on attracting more professional shoppers, which currently account for about 50% of its revenue.
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Home Depot said Tuesday its core homeowner shopper remains resilient in the face of higher gas prices and plummeting consumer confidence, leading the retailer to reaffirm its full-year guidance after beating fiscal first-quarter expectations. "The homeowner in a relevant sense is perhaps more protected financially than other customer cohorts and so we continue to see engagement," finance chief Richard McPhail told CNBC in an interview. Still, in the face of rising geopolitical tensions, plummeting consumer confidence and a broken housing market, those shoppers are engaged "up to a certain point," said McPhail. "They continue to tell us that they are going to defer their spend on larger projects," he said.
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