Home Depot generates half of its sales from professionals, a lucrative customer cohort. Consumers aren't willing to tackle renovation projects like they were a few years ago.
Relatively high interest rates are choking off demand for home improvement. Home Depot's recent comparable sales decline was less than in previous months.
The Home Depot is well-positioned for revenue and margin growth, with benefits from easing AUR comparisons and normalized demand patterns. The company's revenue outlook is positive, with strong customer engagement and sales, especially in Pro sales and building materials. Margin growth prospects are positive, with benefits from operating leverage, lower shrinkage, and technological advancements to improve efficiency.
Retail stocks to check out in the stock market now.