Home Depot shares dropped sharply after the Atlanta-based retailer said expenses would rise by nearly $1 billion due to increasing employee compensation costs.
For the quarter ending Nov. 1, Home Depot said it earned $3.18 a share on $33.54 billion in revenue, up 23% year-over-year. Analysts surveyed by Refinitiv expected the company to earn $3.06 a share on $32.04 billion in sales.
“The third quarter was another exceptional quarter for The Home Depot as we saw the continuation of outsized demand for home improvement projects, which has led to sales growth of more than $15 billion through the first nine months of the year,” said Home Depot CEO and Chairman Craig Menear in a statement. “Our ability to effectively adapt to this high-demand environment is a testament to both the investments we have made in the business as well as our associates’ focus on customers. We continue to lean into these investments because we believe they are critical in enabling market share growth in any economic environment. I am proud of the resilience and strength our associates have continued to demonstrate, and I would like to thank them and our supplier partners,” said Menear.