Shoppers are pulling back at Home Depot | CNN Business

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Consumers are taking on smaller home improvement projects as higher interest rates and inflation take their toll.

Home Depot

said Tuesday that sales fell 4.5% at stores open at least a year during its latest quarter, and its income decreased 6.4% from the same stretch a year ago.

The company also lowered its sales expectations for the year. It expects sales to decline between 2% and 5% in 2023 from a year prior.

Home Depot said 2023 would be a “year of moderation” for the home improvement market, and sales for the quarter were below its expectations.

The company’s stock fell 3.5% during pre-market trading Tuesday.

“The state of the homeowner is that they’re very healthy,” Home Depot chief financial officer Richard McPhail said in an interview with CNBC. “But I do think — and our professional customers tell us they hear this from their customers — there is that shift, even if it’s temporary, from larger projects into smaller ones.”


, Walmart

and other retailers also report earnings this week, giving investors and economists more data about sentiment among US consumers.

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