Proactive Investors - The Home Depot Inc (NYSE:HD) saw its shares fall by nearly 6% on Tuesday after it forecast a fiscal-year profit decline in 2023.
Earnings per share will probably decline by a mid-single-digit percentage, Home Depot said in a release accompanying its fourth-quarter results. Sales growth is expected to be flat in the year through January 2024.
Just like its fellow retailer Walmart (NYSE:WMT), Home Depot is feeling the pinch of inflation as rising prices and lower consumer demand puts a dent into profits.
The news overshadowed a healthy 4Q for the home improvement retailer, which saw earnings of $3.30 a share in the quarter, topping the estimate of $3.27.
However, comparable sales for the quarter to end December 31, 2022 fell 0.3%, compared with analyst estimates of a 0.3% gain. Revenue for the quarter came in at $35.8 billion versus the consensus estimate of $35.96 billion.
The firm also announced plans for a $1 billion wage investment for hourly workers in response to a tight labour market in North America.
Shares of Home Depot were trading below the $300 level at the midday point Tuesday, at around $299.50.