Daily Management Review

Home Depot forecasts first annual drop in sales since 2009


The American home goods company Home Depot released its first-quarter earnings and its year-end 2023 outlook.

Tony Webster
Tony Webster
Revenues of the corporation plummeted 4.2% in the first quarter to $37.3 billion, and net income dropped more than 8.5% to $3.9 billion. Home Depot also expects 2023 total revenues to be 2-5% lower than they were in 2022. 

The corporation would experience its first yearly sales decline since 2009 if the forecast comes true. Shares of Home Depot decreased by 2% after the findings were released.

According to experts, Home Depot's poor results are linked to inflation and general macroeconomic instability, causing consumers to postpone many big purchases. 

"The American consumers are feeling a little more insecure than a few months ago. I think this will be a common leitmotif of what we will be hearing from other retailers as well," says Scot Ciccarelli, an analyst at Truist Securities. In addition, while sales of home improvement and home improvement products were on the rise during the pandemic and lockdowns, there is now a resurgence in demand among Americans for travel, food away from home and more.

source: reuters.com