ATLANTA – The cost of the spreading coronavirus pandemic dragged on profits early in the year at Home Depot.
Sales did rise as homeowners rushed to pick up essential supplies but on Tuesday, the home improvement chain pulled its financial guidance for the year with so much still unknown about the spread and duration of the virus, or its impact on spending.
Shares dropped 2.6% before the opening bell. For the three months ended May 3, Home Depot Inc. earned $2.25 billion, or $2.08 per share.
Industry analysts had expected $2.26 per share., according to a survey by Zacks Investment Research. Yet the cost of sales rose 7.3%.