Home Depot cuts forecast over US consumer weakness

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favorite tales on this weekly publication.Residence Depot reported weakening gross sales progress and lower its outlook for the monetary 12 months, as the house enchancment retailer blamed a downturn in its efficiency on a sluggish housing market and weaker client sentiment.The massive-box US retailer reported same-store gross sales progress of 0.2 per cent within the third quarter, nicely beneath an increase of 1.4 per cent that was anticipated by analysts polled by Seen Alpha. The world’s largest dwelling enchancment chain now expects this 12 months’s same-store gross sales progress to be “barely optimistic”, after forecasting a 1 per cent enhance at its final replace to buyers in August.“Our outcomes missed our expectations primarily as a result of lack of storms within the third quarter, which resulted in better than anticipated stress in sure classes,” stated Ted Decker, chief government of Residence Depot. He added that “an anticipated enhance in demand within the third quarter didn’t materialise. We imagine that client uncertainty and continued stress in housing are disproportionately impacting dwelling enchancment demand.” It is a creating story