Home Depot Share Price Set for Lower Open as Same-Store Sales Drop

Summary:

The Home Depot share price is set for a lower open as the second quarter same-store sales figures came in lower than expected.

Home Depot share price looks set for a lower open after US sales slowed amid a dropoff in the do-it-yourself market. Home Depot reported $4.53 per share earnings, with sales of $41.1 billion in Q2 2021, which beat estimates of $40.79 billion. The markets had estimated earnings of $4.44.

However, its US same-store sales estimates have fallen for the first time in nearly two years, as consumers moved away from pandemic-driven do-it-yourself projects. 2020’s revenues and profits had surged as lockdowns prompted Americans who were stuck at home to take the opportunity to spend on paint and equipment for home renovations and improvement.

As the COVID-19 vaccinations have allowed for an easing of restrictions, more Americans have abandoned some of the lockdown-driven projects. Same-store sales climbed less than expected, coming in at 3.4% versus the 4.9% that the markets had predicted.

Home Depot premarket price is 3.79% lower as of writing.

Home Depot Share Price Outlook

The premarket drop has breached the ascending channel’s lower border, along with the 328.56 support. The premarket price nestles the 323.79 support as well. If the decline continues below this level, 314.73 and 311.16 will become the additional targets to the south.

On the flip side, a bounce off the 323.79 support allows the bulls a chance at moving towards 328.56. Above this level, upside barriers are seen at 337.8 and 345.73. A break of the latter produces new highs for the Home Depot share price.