Tue Nov 18 11:10:00 UTC 2025: Okay, here’s a summary and a news article rewrite of the provided text:

Summary:

Home Depot is facing headwinds due to weaker-than-expected home improvement demand and tepid consumer spending amid housing market pressures (high interest rates). They’ve lowered their full-year profit forecast and missed Wall Street expectations for the third consecutive quarter. While online sales were a bright spot, overall transactions fell, and the company is seeing homeowners defer larger projects. The company is focusing on attracting professional contractors to offset the decline in DIY projects, but is also dealing with impacts of tariffs and potential price hikes on some items.

News Article:

Home Depot Cuts Profit Forecast as Housing Market Slowdown Hits Home Improvement

ATLANTA – Home Depot (HD) shares dropped in premarket trading Tuesday after the home improvement giant lowered its full-year profit outlook and reported third-quarter earnings that fell short of Wall Street expectations. The company cited a weaker housing market, with higher interest rates deterring large home renovation projects, and cautious consumer spending as key factors.

Home Depot now anticipates full-year sales growth of approximately 3% and comparable sales growth slightly above zero. This revision includes an estimated $2 billion boost from the recent acquisition of building-products distributor GMS, sales which were not part of the prior forecast. However, the company expects adjusted earnings per share to decline by about 5% year-over-year, a steeper drop than previously predicted.

“Ongoing consumer uncertainty and continued pressure in housing are disproportionately impacting home improvement demand,” explained Chief Financial Officer Richard McPhail in a CNBC interview. The retailer had initially anticipated increased demand as interest rates eased, but that has not materialized.

For the third quarter, Home Depot reported net income of $3.60 billion, or $3.62 per share, down from $3.65 billion, or $3.67 per share, in the same quarter last year. Revenue also declined year-over-year. While the average transaction value increased, the number of customer transactions fell.

A bright spot was a significant 11% increase in online sales. Home Depot is also focusing on attracting professional contractors to offset the slowdown in do-it-yourself projects, expanding its offerings and through key acquisitions.

The company also faces challenges related to tariffs and potential price increases on some imported goods, although it has attempted to mitigate the impact by diversifying its supply chains and keeping prices the same on some key items.

The company’s stock is down approximately 8% year-to-date, trailing the S&P 500’s gains during the same period.

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