Aug 17 (Reuters) – Home Depot Inc fell short of meeting US comparable sales estimates for the first time in nearly two years on Tuesday as do-it-yourself projects that had a peak during the worst of times dwindled. pandemic, causing the retailer’s shares to fall by almost 5%.
Home improvement chains were very successful in 2020, when their income and profits spiked as Americans stayed home painting, using garden tools and equipment to enhance their living spaces.
New government stimulus launched earlier this year also helped boost demand.
However, the steady rollout of COVID-19 vaccination has caused Americans to return to outdoor activities and abandon some pandemic-induced shopping habits.
Home Depot’s U.S. same-store sales increased 3.4% in the second quarter ended Aug. 1, the smallest increase in two years, and analysts’ estimates of an increase of 4 were not met. , 9%, according to IBES data from Refinitiv.
Foot traffic at Home Depot stores fell every month during the reported quarter. The biggest drop came in May, when traffic plummeted 12.1%, according to data firm Placer.ai.
The slowdown in sales lowers expectations for its smaller rival Lowe’s Cos Inc, which relies even more on DIY consumers than Home Depot, JP Morgan analysts said in a note.
Lowe’s is expected to report its quarterly figures on Wednesday.
(Report by Uday Sampath in Bengaluru. Edited in Spanish by Rodrigo Charme)
