Home Depot sees fiscal 2026 sales, profit below estimates ahead of investor day

A Home Depot logo sign is shown in North Miami, Fla. THE CANADIAN PRESSAP /Wilfredo Lee (Wilfredo Lee/Wilfredo Lee | The Associated Press)

Home improvement chain Home Depot on Tuesday forecast fiscal 2026 comparable sales growth and profit below analysts’ estimates as demand for do-it-yourself projects and big-ticket items cools.

Shares of the company were down 1.6 per cent in premarket trading after the retailer outlined financial targets ahead of its first investor day in more than two years.

The retailer expects same-store sales for fiscal 2026 to grow in the range of flat to two per cent, below the average of analysts’ expectations of 2.34 per cent, according to data compiled by LSEG.

It forecast adjusted earnings-per-share to be flat to four per cent higher. Analysts had estimated the company’s EPS to grow 5.6 per cent.

Retailers such as Home Depot and Lowe’s Nare under pressure as Americans curb spending on costly home renovations and big-ticket projects due to higher borrowing costs.

U.S. housing demand has also been choppy due to rising unemployment and high home prices. Meanwhile, easing U.S. interest and mortgage rates had failed to aid a recovery, with the company projecting a bigger drop in fiscal 2025 profit in its latest quarterly earnings.

However, Home Depot finance chief Richard McPhail said on Tuesday expects the company to “grow faster than our market” next year.

“We believe that the pressures in housing will correct and provide the home improvement market with support for growth faster than the general economy,” McPhail said.

The company employs around 470,000 workers at its 2,356 retail stores and more than 1,200 SRS locations across all 50 states.

Its stock has shed about 10 per cent of its value this year, compared with a 16% rise in the broader S&P 500 index .SPX.

(Reporting by Savyata Mishra in Bengaluru; Editing by Leroy Leo)