Home Depot (NYSE:HD) 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.
CEO Craig Menear told employees the strategy will address the evolving needs of its customers, “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%.
The Atlanta-based Home Depot is hosting its 2019 Investor and Analyst Conference today, where it will provide an update on key strategic priorities and discuss its preliminary outlook for Fiscal Year 2020.
“Customers expect a frictionless, interconnected shopping experience,” read Wednesday’s press release “As a result, in fiscal 2018, the Company began a three-year, accelerated investment program to position itself as One Home Depot.
“This One Home Depot strategy is creating a truly interconnected shopping experience by allowing customers to seamlessly blend the digital and physical worlds.”
HD shares dropped $3.15, or 1.5%, to $212.69