Home Depot, sensing uneasy economic vibe from homeowners and contractors, trims outlook for 2024

abcnews.go.com:

Home Depot’s second quarter sales rose slightly as the nation’s biggest home improvement retailer booked gains from a recent acquisition, but customers reined in spending because of broadly higher costs and elevated interest rates

Home Depot's second-quarter sales rose slightly as the nation's biggest home improvement retailer benefitted from an $18 billion acquisition this spring, but customers continued to rein in spending because of broadly higher costs and elevated interest rates.

Sales edged up to $43.18 billion, from $42.92 billion, beating the $42.57 billion that Wall Street had expected, according to a poll by Zacks Investment Research.

The quarterly performance was an improvement thanks in part to the acquisition of contract supplier SRS Distribution, which contributed $1.3 billion to Home Depot’s sales for the quarter. SRS provides materials for professionals like roofers, landscapers and pool contractors.

“The decision of Home Depot to deepen its expertise in specialist categories via the SRS Distribution acquisition is to be welcomed as this adds a new base of customers,” Neil Saunders, managing director of GlobalData, said. “We believe the integration of SRS will bring sales and bottom-line benefits over time, as well as providing a major point of differentiation against rivals like Lowe’s which are trying to cash in on the pro space.”

The performance helped Home Depot snap a sales slump. In the first quarter, Home Depot ’s sales dipped 2.3% to $36.42 billion as the Atlanta company dealt with high mortgage rates, inflation and a delayed start to spring. It was the third consecutive quarter of declining sales for the retailer, which saw sales skyrocket during the pandemic as millions spent more on their