The daily business briefing: February 21, 2023

Home Depot reports weak sales as lumber prices fall, Ericsson cuts 1,400 jobs as demand for 5G gear weakens, and more

A Home Depot parking lot
(Image credit: Paul Weaver/SOPA Images/LightRocket via Getty Images)

1. Home Depot 4th quarter revenue falls short of expectations

Home Depot shares fell 2.5 percent in pre-market trading on Tuesday after the home improvement chain reported fourth-quarter revenue that fell short of analysts' expectations. Home Depot also forecast annual profit below Wall Street estimates. The company said earnings came in at $3.30 per share, just over the projected $3.28, but revenue was $35.83 billion, just under the $35.97 billion analysts predicted. A drop in lumber costs, which soared during a home construction and renovation boom that sparked shortages early in the pandemic, dragged down comparable sales by 0.7 percent, the company said. Home Depot said it would add $1 billion in annualized compensation for its hourly associates, starting this quarter, as the job market remains strong and many companies invest to retain workers.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
To continue reading this article...
Continue reading this article and get limited website access each month.
Get unlimited website access, exclusive newsletters plus much more.
Cancel or pause at any time.
Already a subscriber to The Week?
Not sure which email you used for your subscription? Contact us