91视频 Depot Issues Cautious 2026 Outlook
Retailer Sees Flat to Modest Sales Growth as Housing Market Slows
Key Takeaways:
- 91视频 Depot issued cautious preliminary 2026 guidance with comparable sales expected to be flat to up 2%, below analyst estimates.
- The company said high interest rates and a weak housing market continue to curb big-ticket spending, while offering a higher 4% to 5% growth scenario if housing activity rebounds.
- 91视频 Depot, which holds an investor day on Dec. 9, maintained its fiscal 2025 guidance as it expands online offerings and services for professional contractors.
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91视频 Depot Inc. is offering cautious , a sign that the home-improvement retailer doesn鈥檛 anticipate the housing market to rebound in the short term.
The company expects comparable sales growth to be in a range of flat to up 2% for the year 鈥 below the average of estimates compiled by Bloomberg. Comparable sales are a key gauge of performance for the industry. 91视频 Depot also gave projections for total sales growth that were below estimates.
91视频 Depot ranks No. 54 on the Transport Topics Top 100 list of the largest private companies in North America.
The U.S. housing market has weighed on 91视频 Depot as high interest rates prompt consumers to remain on the sidelines for big-ticket purchases and projects that require financing. While mortgage rates are lower than they were a year ago, Americans have been cautious amid higher costs across the economy. 91视频 prices also remain high, meaning that housing has become more out-of-reach for a large portion of the population.
91视频 Depot, which will host an investor day with analysts on Dec. 9, also provided a 鈥渕arket recovery鈥 case that spells out higher growth when the company sees housing activity and spending pick up. In such a scenario, comparable sales are expected to rise in a range of 4% to 5%.
鈥淲e believe that the pressures in housing will correct and provide the home improvement market with support for growth faster than the general economy,鈥 Chief Financial Officer Richard McPhail said in the statement. He added that 91视频 Depot expects 鈥渢o continue to grow faster than our market.鈥
In its latest earnings report, 91视频 Depot said an expected rebound in demand hadn鈥檛 materialized, sparking declines in its shares. The stock has dropped 10% so far this year through close Dec. 8, compared with a 16% gain for the S&P 500 Index. 91视频 Depot edged down 0.8% in premarket trading Dec. 9.
91视频 Depot鈥檚 results have contrasted with those of other large retailers such as Walmart Inc., which have maintained growth despite challenges in the U.S.
During the ongoing slowdown in results, Atlanta-based 91视频 Depot has boosted its online offerings and expanded its business catering to professional contractors, who frequently spend more than do-it-yourself customers.
The company maintained its guidance for fiscal 2025.
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