Home Depot (NYSE:HD) reported first-quarter comparable sales that missed the average analyst estimate, leading to a 0.7% stock price decline in the Tuesday premarket.
The home improvement retailer posted Q1 earnings per share (EPS) of $3.63, just above the analyst estimate of $3.60. Revenue for the quarter was $36.42 billion, below the consensus projection of $36.66 billion.
Comparable sales declined by 2.8% year-over-year, more than the 2.19% decline predicted by analysts. Meanwhile, U.S. comparable sales fell 3.2%, versus the estimated 2.35% drop.
The company reaffirmed its fiscal 2024 guidance, which includes 53 weeks of operating results.
In March, Home Depot entered a definitive agreement to acquire SRS Distribution Inc. Since the acquisition has not closed, the guidance does not reflect any impacts from the SRS acquisition, it said.
The company expects total sales growth of approximately 1.0%, including the 53rd week, which is projected to add approximately $2.3 billion to total sales.
Comparable sales are expected to decline by approximately 1.0% for the 52-week period.
"The team executed at a high level in the quarter, and we continued to grow market share," said Ted Decker, chair, president and CEO of Home Depot.
"And while the quarter was impacted by a delayed start to spring and continued softness in certain larger discretionary projects, we feel great about our store readiness, our product assortment in stores and online, and our associate engagement.”