As per reports, The Home Depot, Inc. (HD) suspended its 2020 earnings guidance while reporting worse than expected earnings recently, due to high expenses incurred for the well-being of its workers. Home Depot spent $850 million on its expanded worker benefits during the quarter including paid time off and higher overtime pay.
The retailer reported earnings of $2.2 billion, or $2.08 a share in the first quarter lower than $2.5 billion profit in the same period last year and below Wall Street expectation of $2.26 a share. The total revenue saw a jump by 7.1% from a year ago to $28.3 billion in line with expectations. Stores operating for at least a year witnessed an increase in sales by 6.4% overall and 7.5% in the United States. The company imposed social distancing guidelines in its stores towards the end of the quarter, which also affected its sales figure.
“We took early and decisive action to intentionally limit customer traffic in our stores which we believe had a significant impact to sales in many markets,” stated CEO Craig Menear.
The company expects low demand for home sales, which would be taxing for Home Depot and also for its rival Lowe’s.
The Home Depot, Inc. (HD) is the world’s largest home improvement retailer with retail stores all across North America. The Home Depot sells building materials and home improvement products, as well as lawn and garden supplies, and provides installation, home maintenance, and professional service programs. To learn more about The Home Depot, Inc. (HD) and to continue to track its progress please vista Partners The Home Depot, Inc. Coverage Page.
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