Home Depot forecasts 2020 sales growth below expectations

Earnings

Scott Mlyn | CNBC

Home Depot on Wednesday forecast fiscal 2020 sales growth below Wall Street expectations, three weeks after the home improvement chain cut its 2019 sales forecast.

The company said last month that its One Home Depot strategy, which aims to improve the online and brick-and-mortar businesses, was not yet generating as much revenue as it had expected, prompting it to cut its 2019 sales forecast for the second time.

The strategy will address the evolving needs of its customers, Chief Executive Officer Craig Menear said in a statement on Wednesday.

“We are building on our distinct competitive advantages to capitalize on a large and fragmented market opportunity.”

The company forecast preliminary fiscal 2020 sales growth of about 3.5% to 4% ahead of its analyst day on Wednesday where it would provide more details on the strategy.

Analyst on average had expected sales growth of 4.3%, according to IBES data from Refinitiv.

Shares of the company were down about 1% in premarket trading.

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