Home Depot Falls Most Since 2020 as Margins Spook Investors
- Company is investing to improve its supply chain and logistics
- CFO says uncertainty remains with respect to inflation
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Home Depot Inc. shares fell the most in almost two years Tuesday after fourth-quarter profitability missed Wall Street’s expectations amid supply-chain investments and higher costs.
While sales remained robust for the home-improvement retailer, much of the growth appeared to be driven by higher prices as customer transactions declined and the cost of sales increased. Gross margin, a closely watched gauge of profitability, fell from a year earlier.