Worries over finances and reluctance about taking on mortgages at current interest rates have weighed on consumers, according to Neil Saunders, a managing director at the analytics company GlobalData.
“Interest rate decisions matter more to Home Depot than they do to an average retailer, if only because a large chunk of home improvement demand is tied to the housing markets,” Saunders wrote in a note to investors.
Chief executive Ted Decker pointed to a broader consumer slowdown. Sales related to larger discretionary projects have fallen as consumers continue to shift spending from goods to services, Decker said in a conference call with analysts.
In its quarterly financial report Tuesday morning, Home Depot reported a 1.8 percent decline in customer transactions and a 3.6 percent decline in sales per retail square foot.
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