{"id":2324357,"date":"2024-08-14T11:50:01","date_gmt":"2024-08-14T15:50:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/home-depot-lowers-sales-expectations-as-company-sees-troubling-economic-indicators\/"},"modified":"2024-08-14T11:54:55","modified_gmt":"2024-08-14T15:54:55","slug":"home-depot-lowers-sales-expectations-as-company-sees-troubling-economic-indicators","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/home-depot-lowers-sales-expectations-as-company-sees-troubling-economic-indicators\/","title":{"rendered":"Home Depot Lowers Sales Expectations as Company Sees Troubling Economic Indicators"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhome-depot-lowers-sales-expectations-as-company-sees-troubling-economic-indicators%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2324357&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Home Depot is experiencing a significant decline in sales due to economic fears \u2063that have led homeowners\u200c to postpone <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/consumers-absorb-inflation-as-retail-sales-increase\/\" title=\"Consumers Absorb Inflation As Retail Sales Increase\">home improvement projects<\/a>. In the second quarter of 2024, comparable U.S. store sales fell by 3.6%, prompting the company to revise its <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/zoom-shares-down-90-percent-from-peak-as-pandemic-boom-fades\/\" title=\"Zoom Shares Down 90 Percent From Peak as Pandemic Boom Fades\">annual sales forecast<\/a> to decline by 3% to 4%. Higher interest rates and increased economic uncertainty are reported as primary factors affecting consumer spending, with customers indicating a new level of anxiety\u200d about the economy. Home Depot&#8217;s CEO, Ted Decker, noted a steep drop in housing turnover, which has reached nearly 40-year lows, further discouraging larger projects. Similarly, Wayfair has acknowledged that its \u200bperformance\u2062 is suffering due to a sluggish housing \u2064market. The broader economic climate, characterized by inflation and political instability,\u2064 is contributing to a general pause in consumer spending on home improvements.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<section>\n<p>Fear over the economy is causing homeowners to pull back on home improvement projects, according to Home Depot executives.<\/p>\n<p>On Tuesday, the company announced that comparable U.S. store sales for the second quarter of 2024 dropped 3.6 percent&nbsp;according to a <a href=\"https:\/\/ir.homedepot.com\/news-releases\/2024\/08-13-2024-110126639\" target=\"_blank\" rel=\"noopener\">Home Depot news release<\/a>.<\/p>\n<p>The company now expects sales for the year to <a href=\"https:\/\/www.westernjournal.com\/ap-number-americans-filing-jobless-claims-hits-highest-level-year\/\" target=\"_blank\" rel=\"noopener\">decline<\/a> somewhere between 3 percent and 4 percent.<\/p>\n<p>Earlier estimates predicted this quarter would have a 1 percent sales dip in stores open at least a year, according to <a href=\"https:\/\/www.cnn.com\/2024\/08\/13\/investing\/home-depot-earnings-housing\/index.html\" target=\"_blank\" rel=\"noopener\">CNN<\/a>.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">DJT calls out Kamala Harris for thinking Bidenomics is working!<\/p>\n<p>Watch &#128064; <a href=\"https:\/\/t.co\/6omFfnwyCJ\">pic.twitter.com\/6omFfnwyCJ<\/a><\/p>\n<p>&mdash; Gary D (@KMGGaryde) <a href=\"https:\/\/twitter.com\/KMGGaryde\/status\/1819583928753103030?\">August 3, 2024<\/a><\/p>\n<\/blockquote>\n<p>  <script> \t\t\t\tif( ! getCookie( 'ff_subbed' ) ) if( typeof FFADS.replace_ict !='undefined' ) if( FFADS.replace_ict ) eval( FFADS.replace_ict ); \t\t\t<\/script> <\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&ldquo;During the quarter, higher interest rates and greater macro-economic uncertainty pressured consumer demand more broadly, resulting in weaker spend across home improvement projects,&rdquo; Home Depot CEO Ted Decker said.<\/p>\n<p>Home Depot CFO Richard McPhail said contractors are telling the chain that consumers are nervous in a new way, according to <a href=\"https:\/\/www.cnbc.com\/2024\/08\/13\/home-depot-hd-q2-2024-earnings.html\" target=\"_blank\" rel=\"noopener\">CNBC<\/a>.<\/p>\n<p>&ldquo;Pros tell us that, for the first time, their customers aren&rsquo;t just deferring because of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/online-auto-retailer-carvana-lays-off-1500-employees\/\" title=\"Online Auto Retailer Carvana Lays Off 1,500 Employees\">higher financing costs<\/a>,&rdquo; he said. &ldquo;They&rsquo;re deferring because of a sense of greater uncertainty in the economy.&rdquo;<\/p>\n<p>Decker said <a href=\"https:\/\/www.westernjournal.com\/bidenomics-destroying-america-mays-jobs-report-proof\/\" target=\"_blank\" rel=\"noopener\">housing market<\/a> issues have trickled down to impact Home Depot.<\/p>\n<p>&ldquo;The higher interest rate started to impact the housing market in housing turnover in particular, which is down some 40 percent,&rdquo; Decker said, according to <a href=\"https:\/\/www.thestreet.com\/retail\/home-depot-ceo-flags-alarming-trend-thats-hurting-sales\" target=\"_blank\" rel=\"noopener\">The Street<\/a>.<\/p>\n<p>&ldquo;And I think last quarter, last month, we saw numbers that on an annualized basis, we&rsquo;re approaching 40-year lows. That&rsquo;s also impacting customers&rsquo; interest in financing larger projects,&rdquo; he said.<\/p>\n<p>The big picture also has <a href=\"https:\/\/www.westernjournal.com\/elon-musk-lays-exact-cause-inflation-harris-walz-exacerbate-problem\/\" target=\"_blank\" rel=\"noopener\">clouds<\/a> that are impacting homeowners as they consider large projects.<\/p>\n<p>&ldquo;There&rsquo;s just a lot of noise with political and geopolitical environment, unemployment ticked up, inflation keeps eating away at disposable income,&rdquo; he said.<\/p>\n<p>&rdquo; I think people just took a pause as we progress through the quarter &mdash; or more of a pause &mdash; because of these macro uncertainties,&rdquo; he said.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">Karine Jean-Pierre claims Biden &ldquo;inherited&rdquo; an &ldquo;economy that was on the downturn.&rdquo;<\/p>\n<p>When President Trump left office, inflation was 1.4%, gas was $2.39\/gal, and mortgage rates were ~2.7%.<\/p>\n<p>Under Harris, prices are up 20.1%, gas is ~45% higher, and mortgage rates remain near 7%. <a href=\"https:\/\/t.co\/thVxBoYi96\">pic.twitter.com\/thVxBoYi96<\/a><\/p>\n<p>&mdash; RNC Research (@RNCResearch) <a href=\"https:\/\/twitter.com\/RNCResearch\/status\/1820900792758304871?\">August 6, 2024<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Home goods company Wayfair said the housing market is also at the root of its struggles.<\/p>\n<p>&ldquo;While you&rsquo;ve seen many of our peers that are impacted by housing declined to an even greater degree than Wayfair, at the end of the day, with housing turnover levels that haven&rsquo;t been as depressed since the great financial crisis, the market fatigue weighs on everyone in the category, ourselves included,&rdquo; Wayfair CEO Niraj Shah said during an Aug. 1 call.<\/p>\n<p>Home Depot said in its release that it has 2,340 stores and over 760 branches in the U.S., Puerto Rico, the U.S. Virgin Islands, Guam, Canada and Mexico. Home Depot employs more than 465,000 people.<\/p>\n<div style=\"position: relative;\">\n<div class=\"ff-fancy-header-container\">  <\/div>\n<div class=\"entry-submit-correction inner-content\">\n<div class=\"correction-form\">\n<form style=\"display: none;\">\n<div class=\"sc-name-field\"> <label>* Name<\/label> <br \/> <input type=\"text\" name=\"name\" required> <\/div>\n<div class=\"sc--field\"> <label>* <\/label> <br \/> <input type=\"text\" name=\"\" required> <\/div>\n<p> <label>* Message<\/label> <br \/> <textarea name=\"message\" required><\/textarea>  <\/p>\n<div class=\"required-message\" style=\"display: none; padding-bottom: 15px;\">* All fields are required.<\/div>\n<p> <input type=\"submit\" value=\"Submit\" onclick=\"event.preventDefault(); firefly_sc();\">  <\/p>\n<div class=\"firefly-sc-confirm\" style=\"display: none;\">Success!<\/div>\n<\/p><\/form>\n<\/p><\/div>\n<\/p><\/div>\n<p> <script> \t\t\tfunction firefly_sc() { \t\t\t\tif( typeof window.captchaPublicKey==typeof undefined ){ \t\t\t\t\tconsole.error('window.captchaPublicKey is not defined'); \t\t\t\t} \t\t\t\tgrecaptcha.execute( window.captchaPublicKey, { action: 'submit_correction' } ).then( function( token ) { \t\t\t\t\tvar opts={ \t\t\t\t\t\taction:    'firefly_sc_submit', \t\t\t\t\t\tname:      document.querySelector( '.entry-submit-correction [name=\"name\"]' ).value, \t\t\t\t\t\t:     document.querySelector( '.entry-submit-correction [name=\"\"]' ).value, \t\t\t\t\t\tmessage:   document.querySelector( '.entry-submit-correction [name=\"message\"]' ).value, \t\t\t\t\t\tpost_id:   firefly_post_id, \t\t\t\t\t\tcap_token: token \t\t\t\t\t}  \t\t\t\t\tvar inputs=[ 'name', '', 'message' ];  \t\t\t\t\tfor( var i=0; i <inputs.length; i++ ) if( ! ( opts[inputs[i]]=document.querySelector( '.entry-submit-correction [name=\"' + inputs[i] + '\"]' ).value ) ) { \t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .required-message' ).style.display='block'; \t\t\t\t\t\treturn; \t\t\t\t\t}  \t\t\t\t\tdocument.querySelector( '.entry-submit-correction input[type=\"submit\"]' ).style.display='none'; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).src=firefly_loading_gif_url; \t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display='inline-block';  \t\t\t\t\tconsole.log( 'ma subbing' );  \t\t\t\t\tif( firefly_post_id ) opts['post_id']=firefly_post_id;  \t\t\t\t\t\/* Send the data using post with element id name and name2*\/ \t\t\t\t\tvar posting=jQuery.post( firefly_ajax_url, opts );  \t\t\t\t\t\/* Alerts the results *\/ \t\t\t\t\tposting.done( function( response ) { \t\t\t\t\t\tif( response.success ) { \t\t\t\t\t\t\tconsole.log( response.data ); \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-submitting-img' ).style.display='none'; \t\t\t\t\t\t\tdocument.querySelector( '.entry-submit-correction .firefly-sc-confirm' ).style.display='block';  \t\t\t\t\t\t\tdataLayer.push( { 'event': 'submit-correction' } ); \t\t\t\t\t\t} \t\t\t\t\t}); \t\t\t\t}); \t\t\t} \t\t<\/script>  <\/div>\n<div class=\"ff-fancy-header-container\">  <\/div>\n<style> \t\t\t \t\t\t.insticator-unit.type-commenting{margin: 0 10px 25px 10px}@media screen and (max-width:1060px){#div-insticator-ad-cmt-1, #div-insticator-ad-cmt-2, #div-insticator-ad-cmt-3, #div-insticator-ad-cmt-4{margin: 0 auto 25px auto !important;}}#div-insticator-ad-cmt-1, #div-insticator-ad-cmt-2, #div-insticator-ad-cmt-3, #div-insticator-ad-cmt-4{height: 280px !important; width: 336px !important} \t\t<\/style>\n<div class=\"insticator-unit type-commenting\">\n<div class=\"insticator-ads\">   <script data-cfasync=\"false\" type=\"text\/javascript\"> \t\t\t\t\tif ( ! getCookie( \"ff_subbed\" ) ) { \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-1\"); \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-2\"); \t\t\t\t\t} else { \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-1\").remove() \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-2\").remove() \t\t\t\t\t} \t\t\t\t<\/script> <\/div>\n<div class=\"insticator-ads additional\">   <script data-cfasync=\"false\" type=\"text\/javascript\"> \t\t\t\t\tif ( ! getCookie( \"ff_subbed\" ) ) { \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-3\"); \t\t\t\t\t\tInsticator.ad.loadAd(\"div-insticator-ad-cmt-4\"); \t\t\t\t\t} else { \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-3\").remove() \t\t\t\t\t\tdocument.getElementById(\"div-insticator-ad-cmt-4\").remove() \t\t\t\t\t} \t\t\t\t<\/script> <\/div>\n<\/p><\/div>\n<\/section>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Concerns about the economy are leading homeowners to scale back on home improvement projects, as reported by executives at Home Depot. On Tuesday, the company revealed that comparable sales at U.S. stores for the second quarter of 2024 fell by 3.6 percent, according to a news release from Home Depot. The company now anticipates an overall sales decline of between 3 percent and 4 percent for the year, a revision from earlier forecasts that had predicted only a 1 percent drop in stores open for at least a year, as noted by CNN.<\/p>\n<p>Home Depot CEO Ted Decker stated that rising interest rates and increased economic uncertainty have negatively affected consumer demand across the board, leading to reduced spending on home improvement projects. CFO Richard McPhail added that contractors are reporting heightened consumer anxiety; customers are not just postponing projects due to higher financing costs but also because of broader economic uncertainties.<\/p>\n<p>Decker mentioned that issues in the housing market have had repercussions for Home Depot&#8217;s business. He pointed out that housing turnover has decreased significantly\u2014by about 40 percent\u2014due to higher interest rates impacting market activity. He noted recent figures indicating annualized turnover levels nearing lows not seen in four decades, which is also affecting customers&#8217; willingness to finance larger projects.<\/p>\n<p>The overall economic climate is filled with uncertainties influencing homeowners&#8217; decisions regarding significant renovations. Decker remarked on various factors contributing to this pause in spending: political and geopolitical tensions, rising unemployment rates, and persistent inflation eroding disposable income.<\/p>\n<p>Wayfair&#8217;s struggles can also be traced back to challenges within the housing market; its CEO Niraj Shah indicated during an August 1 call that while many competitors have faced even steeper declines due to housing issues, all companies in this sector\u2014including Wayfair\u2014are feeling the impact of low housing turnover levels reminiscent of those during the financial crisis.<\/p>\n<p>Home Depot operates over 2,340 stores across locations including Puerto Rico and Canada and employs more than 465,000 individuals<\/p>\n","protected":false},"author":1,"featured_media":2324358,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/08\/Home-Depot.jpg","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[37089,38114,6581,38115],"class_list":["post-2324357","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-economic-indicators","tag-home-depot","tag-retail","tag-sales-expectations"],"fifu_image_url":"https:\/\/www.westernjournal.com\/wp-content\/uploads\/2024\/08\/Home-Depot.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2324357","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2324357"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2324357\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2324358"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2324357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2324357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2324357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}