Home Depot Inc. reported a fifth consecutive quarterly decline in revenue, underscoring a drop in demand for
Comparable sales fell 3.5% in its fiscal fourth quarter, Home Depot said Tuesday. The company forecast a 1% decline in comparable revenue this year. Analysts have been expecting an increase of 0.2%.
While mortgage rates have come down from October's 23-year high, they continue to impact home sales and construction. In January, new-home construction sank by the most since the onset of the pandemic, indicating that any pickup in housing demand will be delayed until borrowing costs come down further.
"2023 was a year of moderation," Chief Executive Officer Ted Decker said in a statement.
Despite current signs of weakness, analysts remain confident in the long-term success of Home Depot. In January, analysts at Wedbush Securities upgraded their rating of the retailer from neutral to outperform, pointing to "a rebounding industry environment with healthy Pro and general employment, solid wage growth and homeowner spending power from continued home-price appreciation."
The stock traded 1.3% lower in pre-market trading. The shares have gained 14% in the past year.
