As we reported in our November 13 letter, last week saw a slew of earning reports from several major retailers. Investors and analysts closely followed results with the aim of getting a pulse on the health (or lack thereof) of the American consumer.
Leading the charge was Home Depot (HD:NYSE) releasing its third quarter earnings report before the opening bell on Tuesday. Earnings per share (EPS) came in at $3.81 per share versus $4.24 in Q3/2022, and sales of $37.7 billion were down 3% from last year. The “pro customer” outperformed the do-it-yourself (DIY) customer as small projects trumped sales of big-ticket discretionary items like flooring, countertops and cabinets. Although results were comparatively weaker, investors reacted positively to the “mostly in line” results with HD shares closing up by 5.4% on the day. By Friday’s close, HD shares were higher by 5.4% for the week.
Follow us on: LinkedIn
By Charles Marleau CIM® and William Mitchell CIM®
