Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeNewsRetail & MarketingHome Depot's sales fall short on lackluster housing recoveryComparable sales turned negative in April after rising during the two months prior, executives said on the callAuthor of the article:Last updated 23 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.The Atlanta-based company has expanded its faster-growing business that caters to pro contractors, who often spend more than everyday customers. Photo by David Paul Morris/BloombergA key gauge of Home Depot Inc. sales missed expectations in the latest quarter as muted housing demand and high borrowing costs limited consumer spending on improvement projects.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorSales at locations open at least a year rose 0.6 per cent during the three months ended May 3, according to a statement, slightly below the average of analysts’ estimates compiled by Bloomberg. Earnings per share, excluding some items, beat expectations.Home Depot’s business has been hit by elevated interest rates and high housing prices, which have sparked a pullback in home purchases and upgrade projects over the past three years. Instead of extensive remodels that require financing and large amounts of tools and materials, Americans are taking on smaller projects such as painting and gardening.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againHome Depot shares fell as much as 3.6 per cent on Tuesday. The stock had declined 13 per cent this year through Monday’s close, compared with an 8.1 per cent gain for the S&P 500 Index.“The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty in housing affordability pressure,” chief executive Ted Decker said on a call with analysts, adding that the company doesn’t expect a “marked” improvement.External factors may continue to pressure results: Following a brief dip in February, mortgage rates have risen in tandem with energy prices as the war in Iran creates new apprehension about inflation. Existing home sales have remained flat at the start of the important spring-selling season, while consumer sentiment has deteriorated.Shoppers “continue to defer large projects. They have told us that they have a higher degree of uncertainty,” chief financial officer Richard McPhail said in an interview. The retailer is closely monitoring higher fuel prices and mortgage rates, he said, though changes in spending habits haven’t materialized. It’s too early to determine to what extent prices of Home Depot products will increase from higher fuel costs, he added.The company maintained its full-year guidance. Home Depot executives have previously said that mortgage rates would need to decline and income levels would have to rise in a more significant way for the housing market to pick up.Comparable sales turned negative in April after rising during the two months prior, executives said on the call. Demand has improved in recent weeks as spring takes hold. Garden items, patio grills and storage items were popular among everyday customers, while professional customers purchased power tools, water heaters and paint.“There is nothing particularly spectacular about the latest results from Home Depot,” GlobalData analyst Neil Saunders wrote Tuesday. “But then, nor is there anything particularly shocking.” The figures reflect the continued softness of the housing market, a position that is unlikely to change soon, he said, adding that the focus is on a “medium-term battle” to grab market share from rivals.The Atlanta-based company has expanded its faster-growing business that caters to pro contractors, who often spend more than everyday customers. It also has sought to expand its digital operations and offered AI-assisted shopping. Competitor Lowe’s Cos. has pursued a similar strategy.Home Depot has submitted claims for tariff refunds and has received an immaterial amount so far, McPhail said, adding that the company doesn’t expect repayments to create a “net benefit.” Still, they should help offset higher costs including fuel.Home Depot is kicking off a busy week of big-box earnings, with Lowe’s and Target Corp. scheduled to report on Wednesday, followed by Walmart Inc. on May 21. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.