The Home Depot Cuts 2019 Sales Forecast

By John Heerdink LinkedIn

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.

The Home Depot reported Q3 earnings recently expressing disappointment over its online and brick-and-mortar businesses. The retailer cut its 2019 sales forecast for the second time this year.

It was reported that net income declined by $2.77 billion, or $2.53 per share in the third quarter from $2.87 billion, or $2.51 per share. Same-store sales at Home Depot increased by 3.6% in the third quarter ending November 3 much below expectations at 4.7%. The company expects it’s fiscal 2019 sales to rise by about 1.8%, compared to a prior forecast of a 2.3% increase.

Home Depot has been investing recently on its online business by offering “click and collect” service in which automated lockers are arranged in stores for customers who prefer to pick up their orders and not wait for them to be home delivered. The company has also been working on its supply network to shorten delivery times and develop a user-friendly website, under an initiative called “One Home Depot”. The above initiatives were aimed at increasing sales by up to 6% to $120 billion by 2020.

“We are largely on track with these investments and have seen positive results, but some of the benefits anticipated for fiscal 2019 will take longer to realize than our initial assumptions,” stated Chief Executive Officer Craig Menear.

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.

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

Stay Informed! Stay Competitive!

Join us at Vista Partners! It’s FREE to receive email updates.

Nov2(2)



Post View Count : 252
(Read Original Story: Home Depot cuts sales goal as online push not delivering as expected in Reuters)


YOUR GUIDE TO STAYING INFORMED IN THE MARKETS

Subscribe for FREE Email Updates & Access To EXCLUSIVE Research!

Connect with us