Citing a sharp decline in big project demand, The Home Depot slashed its full-year profit forecast after high mortgage rates and weak weather hit its third-quarter results.
The company said in a recent report that it now expects its annual adjusted profit per share (EPS) to fall by 5%, which is a steeper decline than its previous forecast of a 2% decline. The company also reported that its sales at U.S. stores open for at least one year rose to only 0.2% last quarter.
"We believe that consumer uncertainty and continued pressure in housing are disproportionately impacting home improvement demand," Home Depot CEO Ted Decker said in a statement.
Home Depot also mentioned that fewer storms and extreme weather events during the third quarter led to weaker demand for roofing materials, backup power generators and plywood, according to CNN .
Meanwhile, the company has been dealing with President Donald Trump's tariffs on imported goods, as nearly half of Home Depot's goods come from suppliers outside of the U.S., the media outlet said.
Home Depot Finance Chief Richard McPhail told The Wall Street Journal during an August interview that the company would have to raise some prices because of the administration's taxes on imports.
"For some imported goods, tariff rates are significantly higher today than they were at this time last quarter," he told The Wall Street Journal. "So as you would expect, there will be modest price movement in some categories, but it won't be broad-based."
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