Shares of Home Depot, Inc. (NYSE: HD) are down about 5% on Tuesday after the company cut its 2019 forecast and reported same-store sales that fell short of estimates. Home Depot also posted revenue that missed analysts’ targets.
The home improvement retailer said revenue increased 3.8% to USD 27.22 Billion for the third quarter of fiscal 2019. This compares to Wall Street’s call for USD 27.53 Billion. Adjusted earnings were USD 2.53 per share, a penny better than expected.
Sales at U.S. stores open at least 12 months rose 3.8%. Analysts were expecting a 4.7% gain.
Home Depot also said its average customer ticket in the third quarter was USD 66.36, which was higher than it saw in the quarter a year earlier. Sales per square foot also rose to USD 449.17 from the year-earlier period.
“Our third quarter results reflected broad-based growth across our business, yet sales were below our expectations driven by the timing of certain benefits associated with our One Home Depot strategic investments,” said Craig Menear, Home Depot Chairman, CEO and President. “We are largely on track with these investments and have seen positive results, but some of the benefits anticipated for fiscal 2019 will take longer to realize than our initial assumptions.”
For the full year, Home Depot now expects sales to grow by 1.8%, down from a prior estimate of 2.3%. The company also cut its same-store sales forecast for the fiscal year. It now expects growth of 3.5%, compared with an earlier forecast of 4%.
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