Home Depot’s (HD) share price is down 4% immediately after the company reported fourth-quarter earnings that fell short of Wall Street expectations.
The Atlanta, Georgia-based home improvement retailer announced earnings per share of $3.30 U.S. versus $3.28 U.S. that was expected by analysts.
Revenue in the quarter totaled $35.83 billion U.S. compared to $35.97 billion U.S. that had been forecast.
Home Depot said it is struggling with record levels of inflation, a shift in consumer behavior, and a housing market downturn.
The company also said its latest earning were hurt by a decline in lumber prices, which negatively impacted its comparable sales by 0.7%.
In terms of forward guidance, Home Depot provided a muted outlook for 2023, saying it expects sales to be flat.
The company also projected an operating margin of about 14.5% and expects a mid-single digit percent decline in its earnings-per-share this year.
Home Depot’s stock is essentially flat over the last year (up 0.56%) and trading at $317.95 U.S. per share.