- Home Depot (HD) reported fourth quarter and fiscal 2022 results on Feb. 21, 2023.
- The home goods retailer fell short of expectations on revenue and comparable store sales, although earnings per share (EPS) beat estimates.
- Sales guidance for 2023 also came in below analysts' forecasts, sending shares lower.
Home Depot (HD) was the worst-performing stock in the Dow as the biggest home improvement retailer posted weaker-than-expected quarterly sales and warned about full-year growth.
Home Depot reported that revenue increased 0.3% to $35.8 billion, and comparable store sales declined 0.3%. Both were below estimates. Customer transactions fell 6%, and sales per retail square foot were down 0.1%. Earnings per share (EPS) of $3.30 beat forecasts.
CEO Edward Decker noted that because of high inflation, rising interest rates, a tight labor market, and moderating equity in housing markets, "we do expect moderation in home-improvement demand."
Guidance Misses Estimates
The company anticipates that 2023 sales and comparable store sales will be approximately the same as in 2022. Analysts were expecting a slight gain. It said that EPS are set to drop by a mid-single-digit percentage, while estimates were for profit to be flat.
The company also announced that it is raising its quarterly dividend by $0.19 to $2.09, and it will spend $1 billion on salary increases for its hourly employees this year.
Home Depot shares sank 7% on Feb. 21, and they've lost 14% in the past year.