Home Depot (HD) Fell 0.66 Percent on Tuesday Premarket after Presenting Very Soft Q1 Earnings Report

Most importantly, comparable sales fell 4.6% for the quarter, undershooting consensus estimates for a 2.1% drop. Executives at Home Depot (HD) found no better execute than citing extreme weather in California as having disproportionately impacted results, and mentioned lumber price deflation as predominant negative factors for the period. Revenue of $37.3 billion (-4.1% YoY) also missed expectations by a hefty $1.05 billion.

Average ticket value for the quarter rose 0.2% YoY to $91.92, but sales per square foot fell 4.7% to $592.94.

Operating income fell 6.4% to $5.55 billion, while net income fell 8.5% to $3.87 billion. Earnings per share came in at $3.82, compared with $4.11 a year ago and the consensus $3.79.

Looking ahead, the home improvement retailer expects full-year comparable sales to fall 2% to 5% and earnings per share to fall 7% to 13%, compared with a previous forecast for a mid-single-digit decline. Home Depot (HD) warned of uncertainty about consumer demand as it develops its guidance.