Home Depot Lowers Full-Year Outlook Amid Soft Home Improvement Demand

US home improvement retailer Home Depot has revised its full-year forecast downward after a disappointing third-quarter performance marked by lower-than-anticipated demand. President and CEO Ted Decker attributed the shortfall primarily to the absence of storm activity in the third quarter, which intensified challenges in certain product categories.

Decker stated, "While core demand remained relatively steady, we did not observe the anticipated uptick in the third quarter." The company, a key player in the home improvement market, had confirmed its outlook at the close of the second quarter but adjusted its expectations based on recent results.

Ahead of the New York Stock Exchange opening, Home Depot's shares dropped 3.04 percent in electronic trading. Decker further noted, "Consumer uncertainty and persistent headwinds in the housing sector are disproportionately affecting home improvement demand."

Looking forward, Home Depot expects annual sales to grow by approximately 3.0 percent, representing modest positive growth compared to the previous year. This projected increase is chiefly driven by the $5.5 billion acquisition of GMS, a supplier specializing in professional-grade products.

However, net earnings per share are now anticipated to decline by around six percent, a steeper drop than initially forecasted, reflecting ongoing market challenges.