Overview
- Adjusted EPS came in at $3.74 versus roughly $3.84 expected, while revenue of about $41.35 billion slightly topped estimates near $41.1 billion.
- Comparable sales rose 0.2% overall and 0.1% in the U.S., with customer transactions down 1.4% and average ticket up about 2% to $90.39.
- Full-year adjusted earnings are now forecast to decline approximately 5% year over year; sales growth guidance was raised to about 3% with GMS expected to contribute roughly $2 billion and comps guided to be slightly positive.
- Executives pointed to weaker storm-related categories and a sluggish housing market that has kept big-ticket projects on hold as mortgage rates hover around 6% to 7%.
- The stock fell several percent after the report, as the company leans on its pro-focused expansion, including SRS Distribution and the GMS acquisition, to offset softer DIY demand.