Home Depot reaffirms guidance amid 'frozen housing market conditions' - CNBC
Home Depot reported second-quarter earnings that exceeded analyst expectations despite a 'frozen' housing market. The company reaffirmed its full-year guidance, citing consumer hesitancy regarding large-scale projects due to inflation and economic uncertainty.
Why it matters
Home Depot's performance serves as a key indicator of consumer confidence and the health of the broader housing and construction sectors.
Home Depot on Tuesday reported fiscal second-quarter results that beat Wall Street expectations on the top and bottom lines and reaffirmed its full fiscal-year guidance.
"We continue to operate in what I call 'frozen housing market conditions,' but we also know that we're taking share and that we're serving our customers better every day," CFO Richard McPhail told CNBC. "It's a reflection of the continued investment we've made and the focus on executing our strategy."
McPhail said Home Depot saw "broad engagement" across its categories, including in both its pro and do-it-yourself businesses, but the greater uncertainty in the market led the company to reaffirm rather than raise its guidance.
He added that Home Depot's customer is "a healthy cohort," though he said the company has still not seen consumers return to big projects.
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