NEW YORK, Nov. 18 (Xinhua) -- U.S.-based multinational home improvement retailer Home Depot on Tuesday reported a 1.3 percent year-over-year decrease in third-quarter net earnings to 3.6 billion U.S. dollars and cut its performance guidance for fiscal year 2025.
Adjusted diluted earnings per share for the quarter ended Nov. 2 slipped to 3.74 dollars, down from 3.78 dollars a year earlier. The company also lowered its guidance on gross margin for fiscal year 2025 to 33.2 percent from 33.4 percent.
However, the company's total sales were projected to see a 3 percent growth in fiscal year 2025, up from an earlier forecast of around 2.8 percent, following the acquisition of building material distributor GMS Inc. in the third quarter.
The updated guidance reflects the company's third-quarter performance, continued pressure in the fourth quarter from the lack of storm activity, ongoing consumer uncertainty and housing pressure, and the inclusion of GMS, Home Depot said in a news release.
"Our results missed our expectations primarily due to the lack of storms in the third quarter, which resulted in greater than expected pressure in certain categories ... We believe that consumer uncertainty and continued pressure in housing are disproportionately impacting home improvement demand," said Ted Decker, chair, president and CEO of Home Depot.
