Home Depot's sales continue to soften in 2024 as inflation, delayed start to spring weigh on sales

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Home Depot’s sales continued to soften in the first quarter as the nation’s largest home improvement retailer not only was constrained by high mortgage rates and customers dealing with inflation concerns, but it also had to deal with a delayed start to...

Home Depot's sales continued to soften in the first quarter as the nation's largest home improvement retailer was not only constrained by high mortgage rates and higher inflation for its customers, but it also had to deal with a delayed start to spring.

Sales slipped 2.3% to $36.42 billion for the period ended April 28, just shy of the $36.65 billion that analysts polled by Zacks Investment Research expected. It was the third consecutive quarter of declining sales for the retailers, which saw sales skyrocket during the pandemic.

Customer transactions dipped 1% in the quarter, with shoppers also spending a bit less, averaging $90.68 per receipt compared with $91.92 a year earlier.

Sales at store open at least a year, a key gauge of a retailer's health, declined 2.8% globally, and 3.2% in the U.S.

Last week the average rate on a 30-year mortgage fell for the first time in a month, a slight relief for home shoppers already facing the challenges of rising housing prices and a shortage of homes for sale.

The modest pullback followed a five-week string of increases that pushed the average rate to its highest level since November 30. When mortgage rates rise, they can add hundreds of dollars a month in costs for borrowers, limiting how much homebuyers can afford.

Americans are pulling back on large home remodeling projects, like bathrooms and kitchens, and that is hitting Home Depot, said Neil Saunders, managing director of GlobalData.

“Many more households are reluctant