Home Depot said Tuesday that it expects sales growth to return at a rate of about 3% to 4% per year once the home improvement market stabilizes.
The home improvement retailer provided a market stability base case outlook ahead of its 2023 Investor and Analyst Conference, saying it expects the overall home improvement market to swing back up to low-single digit growth.
“Once the home improvement market returns to stability, we expect to see sales growth consistent with how our business has performed in the past,” said Chief Financial Officer Richard McPhail.
Under this base case, the company expects its gross margin rate to remain flat and for earnings per share to grow in the mid-to high-single digit percentage range.
McPhail said the outlook assumes share capture, though Home Depot isn’t ruling out a case for even higher growth.
Home Depot also backed its guidance for sales to fall 2% to 5% in fiscal 2023 while earnings fell between 7% and 13%.
Shares ticked up 1% to $303.57 in premarket trading.
Write to Dean Seal at [email protected]