News | Quarterly report

Back

Timber prices and punitive tariffs dampen Home Depot expectations

The fall in the price of timber and the announcement of further punitive tariffs have caused Home Depot to downplay its sales expectations. Instead of overall growth of 3.3 per cent, the global market leader now anticipates an increase of 2.3 per cent in fiscal 2019/2020, and for like-for-like sales 4.0 per cent instead of 5.0 per cent. This emerged from the company's latest quarterly report. In the second quarter (ended 4 August 2019) Home Depot reported sales of USD 30.389 bn, an increase of 1.2 per cent compared with the same period in the previous year. Like-for-like growth came to 3.0 per cent in total, and 3.1 per cent in the USA. The wide discrepancy between absolute and like-for-like growth rates was attributable to the fact that fiscal 2018 had 53 weeks.

"We are encouraged by the momentum we are seeing from our strategic investments and believe that the current health of the U.S. consumer and a stable housing environment continue to support our business. That being said, lumber prices have declined significantly compared to last year, which impacts our sales growth. As a result, today we are updating our sales guidance to account primarily for continued lumber price deflation, as well as potential impacts to the U.S. consumer arising from recently announced tariffs. We are reaffirming our earnings-per-share growth guidance for fiscal 2019."




|22 August 2019

SEND
 PRINT 

Post a comment

* Please complete the areas marked in red correctly and in full!.



(will not be published)

* obligatory fields


Latest news

The Dutch and Brits like DIY the least of all

The trend from do-it-yourself to do-it-for-me is once again confirmed by the European Home Improvement Monitor. The shifts are certainly slow still: View news...

German DIY retail association needs new chairperson

The German DIY retail association BHB will have to look for a new chairperson. Ralf Bartsch, who has only been speaker of the BHB executive board for View news...

Holiday shopping trends also in the home improvement sector

For American online shoppers, 3 December is the best day to get tools and home improvement products at a discounted price. Because on so-called View news...

“Expansion in growth markets attractive for trade”

"The faltering economy in home markets makes it attractive for the retail trade to invest in global growth markets." This is how Mirko View news...