DIYers are no longer racing for hammer and nail

Home Depot’s disappointing Q2 following pandemic boost may signal end to home improvement boom

National Weekend Edition /
Aug.August 21, 2021 02:00 PM
(Getty)

(Getty)

Maybe all those do-it-yourselfers completed all their projects around the house.

Home Depot’s same-store U.S. sales fell short of estimates in the second quarter, according to Reuters. It’s a notable decline from the company’s huge pandemic-fueled 2020.

Same store sales did rise, but just 3.4 percent in the second quarter compared to Q1. That was the smallest increase in two years, and well below analysts’ estimates of 4.9 percent.

Share prices for the nation’s largest home improvement retailer fell by as much as 5.5 percent earlier this week. Still, the company’s earnings per share of $4.53 bested estimates of $4.44. Net sales were also up 8.1 percent to $41.12 billion.

Cut off from leisure activities and forced to spend more time at home, Americans last year flocked to Home Depot to embark on DIY projects.

Despite the Delta variant’s surge, leisure activities have picked up and venues have reopened, factors that could account for the retailer’s underwhelming performance last quarter.

About half of lumber dealers and manufacturers — many of them who experienced shortages for much of the pandemic — recently reported surpluses.

Home Depot CFO Richard McPhail did say that sales in the first weeks of August were comparable to the second quarter. Regarding the Delta variant, McPhail added the company doesn’t “see anything that we would point to and say that’s the impact.”

[Reuters] — Dennis Lynch 






    Related Articles

    arrow_forward_ios
    Lissette Calderon and renderings of The Julia (Neology Life)
    Lissette Calderon scores $78M construction loan for second Allapattah multifamily project
    Lissette Calderon scores $78M construction loan for second Allapattah multifamily project
    AHS Residential’s Ernesto Lopes and AEW Capital Management CEO Jeff Furber (AHS, AEW, Grand Peaks)
    AEW buys multifamily near West Palm, in southern Miami-Dade from AHS for $123M
    AEW buys multifamily near West Palm, in southern Miami-Dade from AHS for $123M
    Pompano Beach mixed-use project scores $45M construction loan
    Pompano Beach mixed-use project scores $45M construction loan
    Pompano Beach mixed-use project scores $45M construction loan
    Alex Rodriguez and Constantine Scurtis at far right (Getty)
    A-Rod gets 13 lawsuits dismissed that were filed by ex-brother-in-law over real estate empire
    A-Rod gets 13 lawsuits dismissed that were filed by ex-brother-in-law over real estate empire
    Cemex CEO Fernando González (Cemex)
    Cemex digs into northwest Miami-Dade with $33M purchase of over 150 acres
    Cemex digs into northwest Miami-Dade with $33M purchase of over 150 acres
    South Florida construction starts more than triple in June
    South Florida construction starts more than triple in June
    South Florida construction starts more than triple in June
    Judge Michael Hanzman and the site at 8777 Collins Avenue (Miami-Dade Circuit Court, Getty)
    Judge overseeing Surfside collapse litigation chastises town over proposed downzoning
    Judge overseeing Surfside collapse litigation chastises town over proposed downzoning
    Sweetwater affordable senior rental project scores $33M construction loan
    Sweetwater affordable senior rental project scores $33M construction loan
    Sweetwater affordable senior rental project scores $33M construction loan
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...