Home Depot Sales Declined 4.2% in Q2, Earnings Down 8.5%

Home Depot Sales Declined 4.2% in Q2, Earnings Down 8.5%

May 16, 2023 from Floor Focus FloorDaily News

Atlanta, GA, May 16, 2023 – The Home Depot reported sales of $37.3 billion for Q1 2023, a decrease of 4.2% from Q1 2022’s $38.9 billion.

Comparable sales for Q1 2023 decreased 4.5%, and comparable sales in the U.S. decreased 4.6%.

Net earnings for Q1 2023 were $3.9 billion, a decline of 8.5% compared with net earnings of $4.2 billion in the same period of fiscal 2022.

“After a three-year period of unprecedented growth for our sector, during which we grew sales by over $47 billion, we expected that fiscal 2023 would be a year of moderation for the home improvement market. Our sales for the quarter were below our expectations primarily driven by lumber deflation and unfavorable weather, particularly in our Western division as extreme weather in California disproportionately impacted our results,” said Ted Decker, chair, president and CEO.

Home Depot said in now expects sales and comparable sales to decline between 2% and 5% for the fiscal year versus an earlier forecast of flat sales for the year.

Sales in the flooring department were down double digits in Q1 on a YOY comparison.