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Home Depot tops estimates as sales surge 25%, but shares fall on worries pandemic gains won’t last

February 23, 2021


Home Depot’s fourth-quarter earnings surged past investors’ expectations as consumers poured more money into home improvement due to the pandemic and strength of the real estate market.

Shares were down nearly 6% early Tuesday, after the company did not provide an outlook for the year in its earnings report.

Chief Financial Officer Richard McPhail said the retailer is not sure how long the pandemic will last and how that may influence consumer spending. He said if demand from the second half of last year continues, it would lead to flat to slightly positive same-store sales growth and an operating margin of at least 14% this year.

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