Home Depot Inc (NYSE:HD, ETR:HDI) saw weaker consumer spending on home improvement during the second quarter but still managed to deliver sales and profits above Wall Street estimates.
Sales for Q2 were $43.2 billion, up 0.6% from the year-ago quarter and ahead of estimates of $42.6 billion.
Adjusted earnings per share (EPS) were $4.67, compared to $4.68 in the year-ago quarter. Analysts had projected EPS of $4.54.
“During the quarter, higher interest rates and greater macro-economic uncertainty pressured consumer demand more broadly, resulting in weaker spend across home improvement projects,” CEO Teck Decker said in a statement.
“The underlying long-term fundamentals supporting home improvement demand are strong.”
However, Home Depot now expects its comparable sales to decline between 3% and 4% for the year, up from its earlier forecast of a 1% decline.
It upwardly revised its estimates for full-year total sales and EPS.
It now expects total sales to increase between 2.5% and 3.5%, compared to its earlier expectation of a 1% increase.
EPS is seen increasing between 1% and 3%, implying greater upside than its earlier forecast of 1% EPS growth.
Shares of Home Depot traded up 0.3% at about $345 late morning on Tuesday.