(Reuters) -Dwelling Depot raised its annual same-store gross sales forecast on Tuesday, betting on resilient demand from skilled contractors to offset weak spending on greater initiatives similar to kitchen renovations.
The highest U.S. dwelling enchancment retailer’s shares, up 18% this 12 months, rose 2% in premarket buying and selling because it posted a smaller-than-expected drop in third-quarter comparable gross sales.
“As climate normalized, we noticed higher engagement throughout seasonal items and sure outside initiatives in addition to incremental gross sales associated to hurricane demand,” CEO Ted Decker stated in a press release on Tuesday.
Dwelling Depot (NYSE:) has seen uneven demand prior to now two years, as prospects grappled with sticky inflation and better mortgage charges.
Clients have as an alternative targeted on restore and upkeep actions round their current properties.
It nonetheless posted a 1.3% decline in comparable gross sales within the quarter, its eighth straight quarter of declines, in contrast with analysts’ common estimate of a 3.25% drop, in response to knowledge compiled by LSEG.
Dwelling Depot now expects a fall in comparable gross sales of two.5% for fiscal 12 months 2024, in contrast with its prior vary of a 3% to 4% drop.
