Home Depot sticks by outlook, buys back $15 billion in stock

Home Depot sticks by outlook, buys back $15 billion in stock


1 photo

Estimated read time: 1-2 minutes

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

NEW YORK (AP) — Home Depot is sticking by its outlook for the year and will buy back $15 billion in company shares.

The Atlanta company is laying out its strategy to investors Wednesday, with CEO Craig Menear saying that the retail landscape is changing at an unprecedented pace.

Home Depot expects to post annual, per-share profits of $7.36, and comparable-store sales growth of 6.5 percent.

Sales in the most recent quarter surged, thanks in part to rebuilding efforts after a pair of devastating hurricanes hit Texas and Florida, and wildfires consumed entire neighborhoods in the West.

The company is focusing on making its online services and sales more connected to its brick-and-mortar operations, while improving delivery. The focus comes as Amazon.com has upended much of the retail sector with free delivery to customers who pay for Prime memberships.

Home Depot expects its website to surpass 1.8 billion visits this year while it bolsters options for specific types of customers, including professionals and homeowners doing their own projects and repairs.

"The front door of our stores is no longer the front door to our stores," Menear said.

The retailer plans to spend more investing in improving technology and services. That could slow its margin expansion, said Citi analyst Kate McShane. But, it will help give them a better long-term position.

In morning trading, Home Depot shares fell $2.70 to $180.15. The stock has rallied 34 percent in the year to date.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Photos

The Associated Press

    SIGN UP FOR THE KSL.COM NEWSLETTER

    Catch up on the top news and features from KSL.com, sent weekly.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast