The recession in America just hit Home Depot and Lowe’s, home improvement stores whose success is fundamentally linked to the US housing and real estate market.
Home Depot reported a big revenue miss on the quarter. While Lowe’s reported revenues down 17% YoY in Q1 2024. These poor performances are a signal the the US consumer is now cutting back on discretionary purchases – namely expensive home renovation projects.
One reason for this is due to the big slowdown in the housing market. With the National Association of Realtors reporting that home sales are down near 30-year lows in 2024. Indicating that fewer people are moving and starting renovation projects. Which hurts Home Depot’s business.