Home Depot misses profit expectations as it spends heavily to reward employees working during the pandemic; shares drop

Home Depot Inc missed estimates for quarterly profit on Tuesday, as the home improvement chain spent heavily to compensate employees working at its stores during the COVID-19 pandemic.

Shares of Home Depot, which have gained 12.4 per cent this year, dropped nearly 3 per cent to US$238.50 in premarket trading, as the company also scrapped its full-year outlook, citing uncertainties stemming from the pandemic. Home Depot said it incurred about US$850 million of pre-tax expenses in the first quarter, as it provided additional bonuses, doubled pay for overtime and added more hours of paid time-off for employees working during a surge of panic buying of cleaning supplies and masks.

The company’s net earnings fell to US$2.25 billion, or US$2.08 per share, in the first quarter ended May 3, from US$2.51 billion, or US$2.27 per share, a year earlier, as it spent heavily to compensate its store employees working during the health crisis.Total net sales rose to 7.1 per cent to US$28.26 billion, beating estimates of US$27.54 billion.© Thomson Reuters 2020

Good

Good for them!

Aww they missed that ole profit margin? Boo hoo. My heart well and truly bleeds! 👿

Seriously? I think they'll be fine with they're $2.25 Billions of net income... God forbid you pay workers a decent wage so they can afford things

Oh no. Not “profit expectations”! They still made $2.25B. 🤨

Aww to bad. Finally paying your staff a living wage

This is part of the reason why nothing works well. Treat employees well and your business suffers. I don't think we can run an economy like this...I don't see how it's sustainable.

This is a good news story. Would have been bad news if the headline was ‘loses money’ instead of ‘misses profit expectations’, i.e. ‘didn’t make as much money as it could have as it was taking care of its employees’

financialpost HomeDepot I want to thank Home Depot for taking care of the employees. Nice to feel safe going to work. 😷😊👏🏻

I went to Lowes (for the last time ever) the other day. Staff were not wearing masks. There was no social distancing. I left without buying anything. I found out later that store already had 1 case of staff infected. Home Depot down the road seems much more aware and careful.

Very disappointing to hear that! They have been doing such a great job trying to serve people. Hoping as more restrictions lift they can start recovering and quickly! Kudos to all the Employees for doing a great job!

Canada Latest News, Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Call for video submissions: Tell us what 'home' means to youCASTING CALL! Today is your last chance to submit a self-filmed video on what 'home' means to you after these months spent inside! We are donating to a charity for Canada’s homeless population for every submission. Submit to Gillian.Bernerstjoseph.com
Source: macleans - 🏆 19. / 71 Read more »

Police say 12-year-old still missing following explosion at home in MarkhamPolice investigating an explosion and house fire in Markham say they have not yet located a 12-year-old boy who lives in the residence. Omg this is horrible.
Source: CP24 - 🏆 30. / 67 Read more »

Officials: Chinese ambassador to Israel found dead in homeThe Chinese ambassador to Israel was found dead in his home north of Tel Aviv on Sunday, Israel's Foreign Ministry said. Corruption seal went wrong ? One down! Nobody cares. Who knows if this is another Chinese propaganda trap set to against others? Stay away from China. You know what it did to it’s people and to other countries.
Source: CTVNews - 🏆 1. / 99 Read more »

Ryan Miller discusses the possibility of playing another season | @Home - Sportsnet.ca'I was really hoping I could catch Dominik. That would be something special to me.' RyanMiller3039 joined GenePrincipe to talk about chasing Dominik Hasek on the all-time wins list, his desire to play another season, and more. Full chat ➡️ RyanMiller3039 GenePrincipe Will always root for Ryan wherever he is and it’s good to see him still enjoying the game he loves. 💙💙💙 RyanMiller3039 GenePrincipe Thinking Gibson is about to get pulled then makes an enormous save
Source: Sportsnet - 🏆 57. / 59 Read more »

Ken Giles on his concerns about MLB starting up play again | @Home - Sportsnet.ca'It's a group decision... We're trying to benefit everyone's concerns and needs.' BlueJays closer Ken Giles joined thehazelmae on Blue Jays Central Home to share his thoughts on what it will take to get MLB players back to work. Full chat ➡️ BlueJays thehazelmae Gee, who would have thought that athletes that can't play with a blister on their finger wouldn't want to play during a pandemic.
Source: Sportsnet - 🏆 57. / 59 Read more »

Former Oakland A's manager Art Howe returns home from hospital - TSN.caFormer Oakland A's manager Art Howe has been released from hospital after a battle with coronavirus. Howe was hospitalized on Tuesday, just two days after he began feeling symptoms.
Source: TSN_Sports - 🏆 80. / 51 Read more »