Home Depot plunges after worst revenue miss in 20 years

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Ahead of this week's earnings-season ending barrage of retail data, analysts and traders were asking if the strong consumer spending momentum from early in the season would carry through or if we would see an uglier side to the US consumer. The answer was delivered moments ago from Home Depot, is decisively the latter.

Home Depot reported its biggest revenue miss in more than 20 years and slashed its outlook for the year as consumers delay large projects and buy fewer big-ticket items like patio sets and grills, the latest sign consumers have maxed out their credit cards after splurging on Weber grills, hot tubs, and patio sets during the pandemic years.

Just how bad things are financially won't be accepted by the masses for another 2-3 months (just a month or two after the new Federal Reserver FedNow digital currency is put into service).

Then it'll be a catastrophic dive to the bottom.

A new currency doesn’t change the economy……
Biden will lose.

I work there. I hope they cut my hours, i hate doing other peoples work. The manager literally watches youtube on his phone all day.

Surprising given how Covid generated so much DIY home improvement with the lockdowns.

I know a boomer that refuses to shop there. Will pay more for the same item across the street at Lowe's.

He despises Trump and loves Biden too.

True story.

had to go to home depot 3-4 times the last few weeks

there isn't 5-10 people in the store......


compared to peak ponzi they have to be off like 90% when accounting for thefts

Credit crunch, death of an empire ...

Every employee on the floor at the local Home Depot is a pajeet. So people quietly stopped shopping there. There are still local alternatives.

Home depot is the Walmart of home improvement stores. They get factory seconds and sell them at factory first prices. Their wood is trash or over priced. There's birds flying around the store sitting salmonella on everything. People bring their dogs in the store so everything has pet fur all over it. They can't even hire a skilled key cutter, it's replaced by a robot. A bag of flavored wood chips aka scrap wood chunks infused with artifical flavorings, is $20 a bag. For wood chips! They contract out their build sheds to migrant workers, then charge out the ass for the shed. They leave their mowers out in the sun all summer to fade and get weathered, and still have the nerve to charge 10k for the thing after everyone's kids have sat on them and pressed every button and pulled every lever. Fuck home depot. Stop over staffing it. People always just milling around laughing and joking and not doing anything. The returns counter is always busier than the check outs.

another thing to note out of this, is we are a nation of renters now

those people simply aren't heading to home depot to maintain their house

expect to see this countries houses deteriorate rapidly....

meh just means time to buy, when I left Home Depot 16 years ago the stock was 42 a share now it's 288
I am not cashing out any time soon

Home depot is where felons work for minimum wage .
They cornered market open while lockdown and yes - all made in china , lumber firewood grade
Birds bother you ? Little sparrows in garden section?
Home depot rents space inside store to multiple merchants .What you see as one is 40-50 merchants selling stuff under 1 roof .
Thats why returns are irrelevant

shit...that's a long time but i would think about cashing out here lol. nobody owns their houses to even need to go to home depot

It is a terrible place to work now but has been a good investment for me since leaving.
Ride the wave terrible managers weed themselves out

Local Home Depot just got rid of all their gas-powered blowers and trimmers. Every single one.

I like Echo brand 2-cycle equipment, and they have all been removed from the shelves. Only ghey electric battery equipment remains.

2/3rds of the gas-powered lawnmowers have been replaced with ghey electric battery mowers too. Only vaxxed idiots and trans buy that shit.

Home Depot is Fucking themselves.

I don't think Home Depot is crashing and burning anytime soon, One Giant hurricane and it will level out.
Although I may get when after my daughter graduates.
A lot of folks including myself have been waiting for lumber to drop so I might be able to finally afford to repair my deck.

I did learn a lot about commodities and markets working there. They really only make money on the Chinese crap they push. The markup on that is insane
Ran about every dept then went into Asst Mgr position but once they cut bonuses it was not worth it.
I ended up getting a better-paying job in IT Engineering right out of the gate.

HD stock currently has a P/E ratio of > 17

[link to ycharts.com (secure)]

We've all gotten used to really high P/E ratios, because people and institutions were willing to bet on the future.

If you go back just 20+ years ago, a P/E ratio of 5 or less was considered a healthy stock price.

During prolonged economic downturns, all of that "faith" that people and institutions place in a stock's long term growth potential begin to fade away.

Right now the stock is trading 17x what the company's earnings are, which isn't crazy high for the markets over the last 5-6 years, but it will be considered overpriced in a falling economy.

If you own the stock, and want to hold onto it, considering hedging your investment by selling call options or buying put options.

They're going to have to cut the dividend due to the lack of revenue, and that announcement will drive the stock price down as well.

You nailed it

I would pick up 12 - 50lb bags of lawn fertilizer every year which used to average about $27 each. Now the bag is 42lbs and $57 each. Bought only three and using free horse compost now going forward.

Honestly, 17 is not bad for this pitiful climate.
But I like your train of thought.

In my store the birds are inside the actual store. Tearing holes in all of the birdseed bags. Yes, that bothers me. The are constantly flying over head and shitting as they go. I don't want mite infested feathers and bird shot on my light bulbs thanks.

Was that for a lawn or a golf course?

Great thread.

Home Depot sells nails. So funny!

I think you better get yourself fish tank , it's more introvertic.
Think how many hands after squeezing dirty penises in bathrooms touched these light bulbs , a lot .

Other AC , thanks for reminding to get eco echo? gas trimmer , nothing beats gas powered tools, need one you attach multiple tools , including mini chain saw

I had a terrible time dealing with Home Depot while working on my bathroom remodel. I will never use them again. Their stuff is crappy.

I own a small retail business and I can tell you that looks like this is happening.

We are down about 15 to 20% so far this May compared to last year. The slow down seemed to start a couple weeks after Easter. We are up on the year as a whole so far but the last month has been far from great.

Last Edited by Fugazi World on 05/16/2023 09:57 AM

Cape Coral Home Depot is packed any time you go there.

I don't see people choosing to budget more carefully as a slur on HD.

Lowes is a mess, much prefer cleanliness and simplicity of HD.

The woman who runs the floor cleaner is always busy at HD, and the aisles are clean.
A ripped bag of whatever will be walked on for a long time before it is cleaned up at Lowes


Bought a shelf at Lowes. Looked great. Seemed fine. The particle board outgasses an unbelievable amount of formaldehyde.

the warning on the box, you need a magnifiying glass to even find.

shit.

The neighborhood Home Depot hired a transgender 'woman' who speaks in a fake woman's voice and so I now shop at Lowes. Bought $5k in new windows from Lowes recently because Lowes doesn't have transgender workers (yet).

Homo Depot went woke.