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BUSINESS Saturday 2 March 2019
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Home Depot sales cool along with real estate market

Associated Press both sales and prices have
ATLANTA (AP) — Strains in been under pressure for
the nation's housing sec- some time - has stymied de-
tor emerged in the aisles of mand for home improve-
Home Depot in the last few ment products," wrote Neil
months of 2018 and ap- Saunders, managing direc-
pear likely to carry over into tor of GlobalData Retail. "In
this year. our view, this has likely af-
In the fourth quarter, Home fected the momentum of
Depot fell short on profit, growth at Home Depot."
revenue and same-stores For the three months ended
sales as rising real estate Feb. 3, Home Depot earned
prices cast a chill over U.S. $2.34 billion, or $2.09 per
home sales. share, for the three months
The company does not ex- ended Feb. 3. That's far
pect its comparable-store short of the per-share earn-
sales growth, a key gauge ings of $2.22 Wall Street was
of health in the retail in- looking for, according to a
dustry, will be as strong this survey by FactSet, though
year as it was in 2018. This Aug. 23, 2018, file photo shows a Home Depot store in Orlando, Fla. Home Depot Inc. reports an extra week in the pe-
Shares fell 3 percent Tues- financial results Tuesday, Feb. 26, 2019. riod helped push profit and
day at the opening bell as Associated Press sales higher.
more disconcerting news A year ago the Atlanta
about the U.S. housing mar- cent in December from al Association of Realtors climbing prices and slim home improvement retail-
ket continued to roll out. the previous month to a said last week that sales housing inventories put er earned $1.78 billion, or
The number of homes be- seasonally adjusted annu- of those homes dropped ownership out of reach for $1.52 per share. The current
ing built in December al rate 1.08 million. It's the 1.2 percent in January to many Americans. quarter was also nicked by
plunged to the lowest level slowest pace of construc- their worst pace in more Those declines can ripple a one-time charge or 16
in more than two years, the tion since September 2016. than three years, signaling out to companies that sell cents per share. Revenue
Commerce Department Supply stores like Home De- that the weakness in the materials like Home Depot climbed to $26.49 billion,
reported Tuesday, a pos- pot can often thrive when U.S. housing market more and its rival, Lowe's, which from $23.88 billion, with the
sible sign that builders an- new home sales dip be- broad. slid in tandem with Home extra week adding approx-
ticipate fewer new homes cause people will buy ex- Would-be homebuyers Depot in early trading. imately $1.7 billion in sales.
will be sold this year. isting homes, rather than are increasingly priced out "A material slowdown in But that that too, was short
Housing starts fell 11.2 per- new. However, the Nation- of the market as years of the housing market - where of forecasts.q

US stocks rise on hopes for a trade deal with China

NEW YORK (AP) — U.S. slowed at the end of 2018.
stocks are rising Friday, re- KEEPING SCORE: The Dow
versing a three-day losing Jones Industrial Average
streak as investors digest rose 90 points, or 0.4 per-
news of a potential resolu- cent, to 26,008 as of 10:45
tion to the U.S.'s trade war a.m. The S&P 500 index and
with China. Nasdaq composite were
U.S. officials are report- up 0.5 percent.
edly preparing a deal that OLD NAVY SAILING AWAY:
could be signed within a Gap surged 18 percent af-
month, according to news ter it told investors it will spin
agency Bloomberg. The off its Old Navy brand into
trade war between the a separate company. The
world's largest economies retailer will retain its name-
has raised prices for con- sake brand, along with Ba-
sumers and companies. It's nana Republic and others,
also deepened concerns in a new, yet to be named
that escalating tariffs could company.
worsen the global econo- The split comes as Old
my's slowdown. Navy has thrived while Gap
President Donald Trump struggles with increasing
held off a threat to impose competition from the likes
higher tariffs on $200 bil- of Target and Amazon.
lion of Chinese products In this Feb. 15, 2019, file photo trader Tommy Kalikas works on the floor of the New York Stock RUNNING START: Foot Lock-
as negotiations contin- Exchange. er jumped 8 percent after
ued. Washington accuses Associated Press the footwear and athletic
Beijing of stealing foreign apparel retailer blew past
companies' technology or Retailers also rose. Gap a solid forecast. Consumer spending in De- investor expectations for
pressuring them to hand it surged on plans to spin off Investors have remained cember took its biggest the fourth quarter. The
over. its Old Navy brand. Foot confident in the strength of tumble in nine years. Dis- company also expects
Technology and bank Locker rose after reporting the U.S. economy, despite appointing retails sales was double-digit profit growth
stocks led the early gains. strong financial results and weak economic reports. another sign that growth in 2019.q