Home Depot Inc on Tuesday warned that it could not predict if its pandemic-induced sales dream run from last year will continue into 2021, even as its quarterly results handily beat analysts' estimates.
Reuters Staff2 Min ReadFILE PHOTO: The logo of Home Depot is seen in Encinitas, California April 4, 2016. REUTERS/Mike Blake/File Photo(Reuters) - Home Depot Inc on Tuesday warned that it could not predict if its pandemic-induced sales dream run from last year will continue into 2021, even as its quarterly results handily beat analysts’ estimates.
Stuck-at-home Americans have been snapping up tools, paint and building materials all through the COVID-19 health crisis, but the roll out of vaccines and the hopes for a normal life have led many to believe that demand in 2021 will fade.“We are not able to predict how consumer spending will evolve,” Home Depot Chief Financial Officer Richard McPhail said.
But if the demand environment during the back half of fiscal 2020 were to persist through the current year, it would imply flat to slightly positive comparable sales growth, McPhail said.Smaller competitor Lowe’s Cos Inc in December said a “robust” 2021 scenario for the home improvement market would likely be a 5% to 7% decline in demand. headtopics.com
Home Depot’s shares fell 2% in premarket trading, even after it reported a 24.5% jump in fourth quarter same-store sales, beating analysts’ average estimate of an 18.9% increase, according to IBES data from Refinitiv.Overall net sales rose 25.1% to $32.3 billion, beating estimates of $30.73 billion. The company earned $2.65 per share, while analysts had expected a profit of $2.62 per share.
Reporting by Uday Sampath in Bengaluru; Editing by Shinjini Ganguli Read more: Reuters Top News »
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I started shopping there again after the owner renounced Trump How did Lowe’s do? Those political donations are worth it, Citizens United paid for a lot of free speech. How could you not profit when the government helps you shut down most of the small businesses? 🤪 Probably not. People upgraded their homes because they are at home and looking at them all the time. Also because it was one of the only stores open during this time. When everybody goes back to work, they won't have time for the home improvement projects.
Are you saying it was a random act or kindness by gawd? Home Depot prices double in the last two months Yes because we are buying out the pipe department and when sold out in Texas we are asking family members in other states to buy pipe repair supplies and overnight them to us Everybody's stuck at home so projects!