(Reuters) -Home Depot missed analysts' estimates for second-quarter sales and profit on Tuesday, as price-conscious homeowners reined in spending on large-scale home renovations and focused on do-it-yourself projects.
Shares of the top U.S. home-improvement chain fell 2% to $388.37 in premarket trading.
Home Depot's results kick off a busy earnings week for big-box retailers, including Walmart and Target, offering early clues on U.S. consumer spending and how these companies are navigating the turbulence
of Trump's tariff policies.
Home Depot and rival Lowe's are grappling with soft demand as higher mortgage rates discourage home purchases. As homeowners opt to stay put longer, spending has shifted toward smaller repair projects and maintenance, dampening sales of big-ticket renovation products.
For instance, demand for kitchen and bath remodels has weakened, as those projects typically rely on financing that has become pricier.
Visits to the home improvement chain were down 2.2% in the second quarter, after a 3.9% drop in the first quarter, according to foot traffic data from firm Placer.ai.
The company posted net sales of $45.28 billion for the quarter ended August 3, compared to analysts' estimate of $45.36 billion, according to data compiled by LSEG.
Its adjusted profit came in at $4.68 per share, below expectations of $4.71.
(Reporting by Savyata Mishra in Bengaluru; Editing by Sriraj Kalluvila)
