Home Depot (HD) reported its fiscal first quarter 2023 earnings results on Tuesday, falling short of estimates as consumer spending on home improvement slowed compared to the pandemic-induced surge.
While Home Depot beat earnings expectations, its revenue for the first quarter declined by 4.2% compared to the same period last year. Same-store sales growth also disappointed, with a 4.5% decrease, significantly lower than the estimated 1.42% decline.
The company’s shares dropped over 4% in pre-market trading following the announcement.
CEO Ted Decker acknowledged the moderation in the home improvement market.
“After a three-year period of unprecedented growth for our sector, during which we grew sales by over $47 billion, we expected that fiscal 2023 would be a year of moderation for the home improvement market,” Decker said in a statement.
Factors such as lumber deflation and adverse weather conditions, particularly in the Western division due to extreme weather in California,