Home Depot Inc (NYSE:HD) backed guidance as it reported better-than-expected second quarter results although it cautioned customers remain wary of big-ticket purchases.
Sales in the three months to June 30 at the Atlanta-based retailer fell 2% to $42.9 billion, ahead of expectations for $42.21 billion, while EPS of $4.65 per diluted share, was down from $5.05 last year but above forecasts of $4.44.
“We were pleased with our performance in the second quarter,” said Ted Decker, chair, president and CEO.
“While there was strength in categories associated with smaller projects, we did see continued pressure in certain big-ticket, discretionary categories.”
“We remain very positive on the medium-to-long term outlook for home improvement and our ability to grow share in a large and fragmented market,” he added.
Home Depot reaffirmed full-year guidance, forecasting a 2-5% drop in sales, an operating margin between 14.0-14.3% and a fall in diluted EPS of 7-13%.
It also authorised a new $15 billion share repurchase programme, effective August 15.
Shares eased 0.6% in pre-market trading.