Pursuits
Home Depot’s Tepid Sales Forecast Signals Homeowner Caution
- Projection implies slower fourth-quarter revenue growth
- Rising housing values have kept Americans spending on homes
The Numbers Don't Lie: Home Depot's Tepid Sales Forecast
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Even after posting better-than-estimated sales last quarter, Home Depot Inc. declined to raise its annual revenue forecast, a sign that Americans’ zeal for remodeling their homes may be cooling.
While sales climbed 6.1 percent in Home Depot’s fiscal third quarter, beating analysts’ estimates, the increase was smaller than the gains in the previous two periods. Because the company maintained its forecast that sales will gain 6.3 percent for the full year, that implies a further deceleration in the current quarter, which runs through January.