The Home Depot slashed its sales forecast on Wednesday, amid reports that the housing market is set to slow, according to Business Insider’s Carmen Reinicke.
The home improvement retailer expects sales growth between 3.5% and 4% in 2020, with estimated maximum sales of about $114.4 billion at the end of the fiscal year in January 2021. This far below the company’s 2017 forecast, which projected revenue from $115-120 billion in 2020.
The retailer’s shares fell 2% in early trading after the announcement.
The November earnings release was the second time this year Home Depot has cut its year-end outlook, citing issues such as the timing of benefits associated with One Home Depot strategic investments, continued lumber-price deflation, and the potential impact of tariffs.
Home Depot also said that in 2020, comparable sales will fall in a range of 3.5% and 4%. It also forecast operating margin of roughly 14%, below its earlier targets. The company reaffirmed its sales and profit forecast for year-end 2019.
