Home Depot sees FY23 sales, comp sales down 2%-5% vs. FY22

The company reaffirmed its guidance for fiscal 2023: Operating margin rate to be between 14.3% and 14.0%; Tax rate of approximately 24.5%; Interest expense of approximately $1.8 billion; Diluted earnings-per-share-percent-decline between 7% and 13% compared to fiscal 2022. The company also provided a Market Stability Base Case outlook: The overall home improvement market to grow by low-single digits; Sales growth between 3% and 4% per year; Maintain flat gross margin rate; Operating margin expansion driven by a combination of sales leverage and productivity; Mid-to-high-single-digit diluted earnings-per-share growth. “While a lot has changed in the environment and our business since our last Investor and Analyst Conference, our objectives to grow market share and deliver exceptional shareholder value remain unchanged, and our culture and values remain our guideposts,” said Ted Decker, chair, president, and CEO. “Investments we’ve made over the last several years have further strengthened our distinct competitive advantages and enabled agility in our operating model.”