Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Business home depot

Spring typically means a boost in sales for Home Depot, but both do-it-yourselfers and professionals are cutting back on their spending. (Photo by Justin Sullivan/Getty Images)

By Hannah Bryan Leaders Staff

Hannah Bryan

News Writer

Hannah Bryan is a news writer for Leaders Media. Most recently she was a reporter for the Sanilac County News...

Full bio


Learn about our editorial policy

May 17, 2023

The Home Depot Misses the Mark

The Home Depot reported its largest revenue miss in more than 20 years on Tuesday after lowering its forecast for this year.

Key Details

  • Homeowners are delaying projects and purchasing fewer large items like grills and patio sets as the cost of living rises. 
  • Cold weather at the beginning of the year and reduced lumber prices also affected the home-improvement store’s sales, CNBC reports.
  • The Home Depot has not had a quarterly miss of this size since 2002. 

Why it’s news

The Home Depot does not expect its sales to improve any time soon. The company is now projecting a sales decline between 2% and 5% for the fiscal year. Its previous predictions projected a relatively flat sales period. This year, the operating margin rate may also be lower—around 14% to 14.3% rather than the previous projection of 14.5%.

Company CFO Richard McPhail told CNBC that the home-improvement store would enter a “year of moderation.” During the pandemic, Americans invested heavily in home-improvement projects. However, now that most have returned to work and the cost of living has risen, fewer are looking to start expensive renovation projects.

The Home Depot’s annual sales have grown by $47 billion in the last three years. While the company was prepared for a drop in sales, rising mortgage rates and a change in consumer spending have made the sales decline more extreme than the company expected, CNBC reports.

“The state of the homeowner is that they’re very healthy,” McPhail says. “They have healthy balance sheets. They have healthy incomes. But I do think—and our professional customers tell us they hear this from their customers—there is that shift, even if it’s temporary, from larger projects into smaller ones.”

This quarter is the second in a row that The Home Depot has failed to meet Wall Street’s revenue projections. When the company missed expectations last quarter, it was the first time since November 2019.

Falling lumber prices are partly to blame for the reduced revenue. Do-it-yourself customer sales were higher than professionals, but sales in both categories were reduced, CNBC reports. 

Spring is typically a profitable time for home improvement stores as the warmer weather prompts customers to start home improvement or gardening projects. Yet greater expenses and changing consumer spending habits have altered this pattern somewhat this year—and not just for The Home Depot. 

Higher mortgage rates have put off potential buyers who would otherwise be looking to refresh a newly bought home. Groceries and other essential items now cost more, prompting homeowners to cut back on additional spending. 

Consumers are also more interested in spending on services and experiences now rather than on the goods home improvement stores can offer. 

However, McPhail predicts that this drop in sales is temporary. 

“Once we’re through this period, we think the medium to long-term fundamentals of home improvement are strong,” he says.

Home / News / The Home Depot Misses the Mark
Share
FacebookTweetEmailLinkedIn

Related Stories

Seattle Takes The Crown For Advanced Tech Talent

by PJ Howland Leaders Staff
Tech

Oct 24, 2023

Seattle tech talent

Seattle has emerged as the metro area with the most advanced tech talent, beating out tech hubs like San Francisco and Silicon Valley.

Key Details

  • According to a new ranking by the Burning Glass Institute, Seattle has the highest proportion of advanced tech workers compared to other cities with similarly sized tech workforces.
  • The ranking evaluated 60 million high-paying, in-demand tech job postings and histories to identify cities with cutting-edge roles like AI and cybersecurity rather than legacy tech positions.
  • With tech giants Amazon and Microsoft headquartered in Seattle, the city edged out the San Francisco Bay Area, Boston, Austin, and Raleigh on the list.
  • The report found that demand for software developers and IT support specialists has declined over the past five years as companies seek more specialized tech talent.

Go deeper

FacebookTweetEmailLinkedIn

More Americans Can’t Keep Up With Car Payments

by Colin Baker Leaders Staff
Loans and Borrowing

Oct 23, 2023

car loans, used cars

A record number of Americans are behind on their car loan payments as higher interest rates and prices weigh on consumers.

Key Details

  • According to data from Fitch Ratings, 6.11% of car loans were at least 60 days delinquent in September, the highest since tracking began in the early 2000s.
  • Some interest rates on used cars can rise to as much as 21%, according to Bankrate.
  • Soaring prices and rising interest rates are squeezing consumers, making it difficult for some to keep up with their auto loans.

Go deeper

FacebookTweetEmailLinkedIn

Chevron Makes $53 Billion Deal Amid Surging Gas Prices

by PJ Howland Leaders Staff
Markets

Oct 23, 2023

Chevron Gas Deal

Chevron is acquiring Hess Corp. for $53 billion, the second significant oil producer acquisition this month as crude prices climb.

Key Details

  • Chevron is purchasing Hess in an all-cash deal worth $53 billion, including debt and preferred stock redemption.
  • This comes just weeks after ExxonMobil announced its $59.5 billion purchase of Pioneer Natural Resources.
  • With oil over $80 per barrel, major producers are using their windfall profits to acquire smaller players and boost payouts to shareholders.
  • Chevron expects the deal to close in H1 2023 pending regulatory approvals and Hess shareholder vote.
  • Hess CEO John Hess will join Chevron's board once the acquisition is complete.

Go deeper

FacebookTweetEmailLinkedIn
nike logo
Company Culture

Oct 20, 2023

Nike to Require More In-Office Days From Employees

by Colin Baker Leaders Staff
blue collar workers
Retirement

Oct 20, 2023

Explaining The ‘C+ Grade’ Retirement Ecosystem in The United States

by PJ Howland Leaders Staff
netflix building
Entertainment

Oct 19, 2023

Netflix Hiking Prices While Adding Millions of Subscribers

by Colin Baker Leaders Staff

Recent Articles

Hiring

Nov 1, 2023

Learn the Winning Answers to the Most Common Phone Interview Questions

Come to your next phone interview fully prepared

Personal Growth

Oct 30, 2023

85 Quotes on Self-Love to Boost Your Self-Esteem

Don’t fall into the trap of harsh self-criticism

Company Culture

Oct 27, 2023

What is a Sabbatical? Your Ticket to Restful Growth and Meaning

Sabbaticals can benefits both employees and businesses

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2025 Leaders.com - All rights reserved.

Search Leaders.com