Atlanta home improvement retailer Home Depot misses profit as pandemic cost weighs

by   |  VIEW 879

Atlanta home improvement retailer Home Depot misses profit as pandemic cost weighs

On Tuesday, the 19th of May 2020, The Home Depot Inc., the No. 1 home improvement company in the United States headquartered on Atlanta Store Support Centre, Georgia, reported a 10.7 per cent drop at its net earnings to $2.25 billion or $2.08 per share, over the retailer’s first quarter of the year that ended on May 3rd, missing an analysts’ expectation of an earning of $2.27 per share, as the home improvement retail chain had spent nearly a billion in benefits for the employees in order to keep its stores up and running amid a rampaging pandemic outbreak in the United States.

Concomitantly, followed by the reveal of Home Depot’s downbeat earnings’ report which came forth as another lethal blow to US consumer spending, a centrepiece of US economy’s strength, NYSE-listed shares’ prices of the home improvisation retail chain dived nearly 3 per cent to $238.60 per share, while the company had also suspended its full-year profit estimate citing growing uncertainties meaded out of the pandemic outbreak.

Histrionically, as Home Depot Inc.’s quarterly earnings’ report comes over the heels of US Commerce Department’s housing market data for April that revealed a record plunge of 30.4 per cent on record, underscoring a weakening of appetite for household expenses which had been experiencing a maverick bull-run over the recent past amid a multi-year low mortgage rate, Telsey Advisory Group analysts wrote in a post-earnings client note on Tuesday (May 19th), “Home Depot is showing that it should weather the COVID-19 pandemic better than most retailers ...

That said, we are concerned about the expected deterioration of the U.S. economy, rapidly rising unemployment, and declining consumer confidence.