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Home Depot has slashed its outlook for sales, citing weaker spending from consumers at a time of high interest rates.
The US home hardware retailer said comparable sales would fall by 3 to 4 per cent this year. It had previously forecast a 1 per cent decline.
The cut in sales guidance comes as US consumers show signs of strain after years of inflation. Interest rates have risen in response, increasing the cost of financing home purchases and repairs.
“During the quarter, higher interest rates and greater macroeconomic uncertainty pressured consumer demand more broadly, resulting in weaker spend across home improvement projects,” said Ted Decker, chief executive.
Home Depot’s sales totalled $43.2bn in the second quarter that ended in late July, the company said on Tuesday, up 0.6 per cent year on year.
Comparable sales, which cover stores open for at least a year, declined 3.3 per cent in the quarter.
Net profit was $4.6bn, beating estimates but 2.1 per cent lower than the same quarter a year ago, as costs rose.
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