Home Depot trims forecasts as trade war weighs on sales
By Iain Gilbert
Date: Tuesday 20 Aug 2019
(Sharecast News) - US home improvement retailer Home Depot warned on Tuesday that Washington\'s trade spat with Beijing would result in subdued sales growth during its current trading year.
Home Depot said that its sales would likely grow by 2.3% year-on-year, down from the 3.3% pace initially forecast as a result of \"potential impacts to the US consumer arising from recently announced tariffs\", while same-store sales growth was pegged to come in at 4.0% - which was down from the 5.0% originally expected.
However, the heavyweight retailer said its full-year earnings per share would not fall below expectations, something chairman, chief executive and president Craig Menear credited to the \"stable housing market\" that would continue to support the business.
In the second quarter of its trading year, Home Depot saw sales at stores open for more than a year rise 3.1%, while its net income rose by 0.8% to $3.48bn, or $3.17 per share - ahead of expectations for earnings of $3.08 a share.
Sales climbed 1.2% to $30.84bn, short of expectations for $30.99bn.
As of 1610 BST, Home Depot shares were up 4.37% at 217.06p.
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