Home Depot reported a shortfall in third-quarter revenue as the retailer’s strategy to meld its online business and its physical stores is taking longer to deliver benefits.
The nation’s largest home improvement chain also faces increasing competition from Lowe’s, which is undergoing an overhaul under its new CEO.
“The competitive environment is tightening and while the economy remains robust, growth is moderating slightly,” said Neil Saunders, managing director of GlobalData Retail. “Ultimately both things are weighing down on Home Depot’s growth prospects.”
Lowe’s Cos. is slated to report its third-quarter results Wednesday.
Home Depot is aiming to increase the speed of delivery by building hubs in smaller communities around the U.S. where it’s able to haul large trucks and deliver to customers. It’s also been installing lockers at the front of the store, allowing online shoppers to order before their store visit and pick up their items. Home Depot said 1,300 stores have lockers and it’s been very pleased with the customer response.
For the three months ended Nov. 3, Home Depot Inc. earned $2.77 billion, or 2.53 per share. In 2018, the Atlanta-based company earned $2.87 billion, or $2.51 per share.