Home Depot casts doubt on further improvement

Home Depot on Tuesday warned that it could not predict if its strong run from last year will continue into 2021, as its quarterly results handily beat analyst estimates. Fred Katayama reports.

Video Transcript

FRED KATAYAMA: Home Depot had a blowout year. But the world's largest home improvement retailer warned Tuesday that it could not predict if those good times will continue into 2021. Americans stuck at home had been snapping up tools, paint, and building materials to spruce up their homes throughout the health crisis. But the rollout of vaccines and the hopes of a return to normalcy have led many to believe that sales growth in 2021 will fade.

Home Depot's chief financial officer said the company is, in his words, not able to predict how consumer spending will evolve. He said if demand in the back half of last year were to continue, comparable sales will be flat to slightly positive in 2021. Home Depot's decision to withhold [? guidance ?] disappointed investors.

Shares fell 6% in early trading Tuesday despite a 25% jump in same-store sales as well as net sales in the latest quarter. Those results, as well as profit, beat analysts' estimates for the year. Home Depot grew its bottom line by 14%