Home Depot raises full-year outlook as customers trade up to premium goods
Key takeaways:
- Home Depot on Tuesday raised its full-year outlook after reporting substantial quarterly profits, fueled by the firm’s most robust first-quarter sales on record.
- For 2022, Home Depot anticipates sales to rise nearly 3% and profits per share growth in the mid-single digits.
- This marks Ted Decker’s first quarter at the helm of the firm.
Home Depot on Tuesday raised its full-year outlook and reported robust quarterly profits, fueled by the firm’s most substantial first-quarter sales on record, an early sign that the retailer is so far surviving inflation.
Home Depot executives stated they haven’t seen customers trading down in the face of higher costs and don’t wish them to begin.
The retailer anticipates sales to rise about 3% for the fiscal year and profits per share growth in the mid-single digits.
The firm once predicted “slightly positive” sales growth and earnings per share increase in the low single numbers. Wall Street was anticipating income growth of 1.8% and profits per share increase of 3.6% for fiscal 2022.
Here’s what Home Depot reported for the quarter ended May 1 compared with what Wall Street was hoping, based on a survey of critics by Refinitiv:
- Profits per share: $4.09 vs. $3.68 anticipated
- Revenue: $38.91 billion vs. $36.72 billion predicted
The home refinement retailer reported fiscal first-quarter net earnings of $4.23 billion, or $4.09 per share, up from $4.15 billion, or $3.86 per share, a year before. Critics surveyed by Refinitiv were hoping the firm to make $3.68 per share.