Home Depot reported weaker-than-expected first-quarter earnings Tuesday while scrapping its 2020 profit guidance, as pre-tax costs to counter the coronavirus pandemic reached $850 million.
Home Depot said earnings for the three months ending in on May 3 were pegged at $2.08 per share, down 8.4% from the same period last year, and well shy of the Street consensus forecast of $2.27 per share. Group revenues, Home Depot said, rose 7.3% from last year to $28.3 billion, topping analysts' forecasts of $27.53 billion tally.
Home Depot also suspended its full-year 2020 profit guidance, which had forecast comparable sales rising between 3.5% and 4.% and earnings of $10.45 per share.
"As the COVID-19 pandemic evolved, we anchored to the core values of our Company by focusing on two key priorities: working to ensure the safety and well-being of our associates and customers, and providing our customers and communities with essential products," said CEO Craig Menear. "We took early and decisive action to intentionally limit customer traffic in our stores which we believe had a significant impact to sales in many markets."
What has consumers staying at home meant for Home Depot? Watch the video above for Jim Cramer's thoughts.
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