1 Red Flag for Home Depot Stock in 2023
Investors didn't abandon Home Depot (NYSE: HD) stock after the company recently warned them about a deteriorating sales environment in the home improvement industry. Shoppers aren't as eager to spend on their homes as they were a few months ago, and the shift caught management by surprise. But Home Depot is still on track to generate much stronger annual sales and earnings in 2023 compared to its pre-pandemic levels.
Still, management's comments in a conference call with investors highlighted a big risk to the business over the next several quarters. Let's take a closer look.
Home Depot's comparable-store sales fell 5% through late March compared to a flat result in the prior quarter. But that slump isn't as bad as it might seem at first blush. Extreme weather in parts of the country delayed the start of spring seasonal sales, as Tractor Supply noted a few days earlier.
Source Fool.com
