Home Depot Expects Sales Growth to Return When Market Stabilizes

By Dean Seal

Home Depot said Tuesday that it expects sales growth to return to a rate of about 3% to 4% per year once the home improvement market stabilizes.

The home improvement retailer provided a market stability base case outlook ahead of its 2023 Investor and Analyst Conference, saying it expects the overall home improvement market to swing back up to low-single digit growth.

"Once the home improvement market returns to stability, we expect to see sales growth consistent with how our business has performed in the past, " said Chief Financial Officer Richard McPhail.

Under this base case, the company expects its gross margin rate to remain flat and for earnings per share to grow in the mid- to high-single digit percentage range.

McPhail said the outlook assumes share capture, though Home Depot isn't ruling out a case for even higher growth.

Home Depot also backed its guidance for sales to fall 2% to 5% in fiscal 2023 while earnings drop between 7% and 13%.

Shares ticked up 1% to $303.57 in premarket trading.

Write to Dean Seal at [e-mail]

(END) Dow Jones Newswires

June 13, 2023 06:44 ET (10:44 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.