Home sales jumped 25%, consumer spending outlook blurred

Home sales jumped 25%, consumer spending outlook blurred

PHOTO FILE: The Home Depot logo appears in Encinitas, California April 4, 2016. REUTERS / Mike Blake / File Photo

Business News

Reuters employees

(Reuters) – Home Depot Inc surpassed quarterly sales estimates of the same store Tuesday, riding a steady wave of demand for home improvement products as the COVID-19 pandemic slows.

However, the company’s shares fell 1.5% in low volume pre-sale trading, after Home Depot warned it was unable to predict how consumer spending would rise this year.

“If the demand environment in the back half of fiscal 2020 continued through fiscal 2021, it would mean relatively optimistic smooth growth,” said Chief Financial Officer Richard McPhail.

Sales of the same store jumped 24.5% in the fourth quarter ended Jan. 31, surpassing analysts ’average estimate of 18.9% increase, according to IBES data from Refinitiv.

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