Here's Why Home Depot Stock Fell 2% in the First 6 Months of 2023
Shares of Home Depot (NYSE: HD) have been sluggish so far this year, retreating 1.7%, according to S&P Global Market Intelligence. The company's last two earnings reports showed a combination of no growth, rising expenses, and a gloomy outlook. Recent economic data was helpful, but not enough to erase damage done earlier in the year.
Home Depot stock has endured some ups and downs throughout the year so far, but its worst stretch came in February and March. The stock dropped roughly 15% during those months after a disappointing quarterly earnings report. The retailer fell short of analyst estimates, suffering declining same-store sales and lower transaction volume. It only scraped by with 1% sales growth thanks to new store openings and increased average ticket size, which was likely related to inflation.
Importantly, the company's outlook was just as uninspiring as its earnings. Due to difficult economic conditions, Home Depot's forecast called for stagnant sales and lower profits. The company expects higher employee expenses to squeeze margins. Those predictions were confirmed as all the same trends continued in the subsequent quarter.
Source Fool.com
