Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Slowdown in discretionary spending seen impacting Home Depot earnings

AJ Bell is an easy to use, award-winning platform Open an account
We've accounts to suit every investing need, and free guides and special offers to help you get the most from them.
You can get a few handy suggestions, or even get our experts to do the hard work for you – by picking one of our simple investment ideas.
All the resources you need to choose your shares, from market data to the latest investment news and analysis.
Funds offer an easier way to build your portfolio – we’ve got everything you need to choose the right one.
Starting to save for a pension, approaching retirement, or after an explainer on pension jargon? We can help.
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
On 14 May, the world’s largest home-improvement retailer Home Depot (HD:NYSE) is set to release its first-quarter earnings.
The firm, which has a market value of over $330 billion and operates more than 2,300 stores in the US, Canada and Mexico, is expected to report EPS (earnings per share) of $3.60 on revenue of $36.65 billion.
While this will be a step up from the previous quarter, it represents a drop in both EPS and sales compared with last year as customers pull in their horns.
Whereas in the past the company enjoyed reliable growth thanks to its industry-leading position, consumers are focusing on essential spending and eschewing big-ticket discretionary items in particular.
In addition, after three years of bumper sales during and after the pandemic, a slowdown in the US housing market due to high mortgage rates has dampened demand for home-related purchases.
Like-for-like sales were down 3.2% in 2023, a year which president and chief executive Ted Decker called ‘one of moderation’, and for 2024 year the company expects organic sales to fall 1% so it has been acquiring other businesses both to boost revenue and fill gaps in its portfolio.
Last December, the company bought Construction Resources, a distributor of design-oriented interior products for professional contractors involved in the RMI (repair, maintenance and improvement) market.
In March, the firm paid $18.25 billion for SRS Distribution, a company which supplies roofing, landscaping and pool contractors, in the hope it would ‘open up a new customer for us’ according to chief finance officer Richard McPhail.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.
Our website uses cookies to give you a better browsing experience.
You can choose to accept all cookies, or control which we use by clicking 'Manage cookies'. To learn more, read our cookie policy.