TREX - Makers of building materials decline after Home Depot's warning

2023-05-16 16:17:36 ET

The stocks in makers of building materials and power tools broadly declined on Tuesday after do-it-yourself retailer Home Depot ( NYSE: HD ) forecast that yearly sales will decline for the first time since 2009.

Swimming-pool company Latham Group ( NASDAQ: SWIM ) slumped 11% to partly reverse its gain from a day earlier. The thinly traded stock had surged 29% on May 9 after its Q1 revenue beat estimates.

Other companies such as Atkore ( NYSE: ATKR ), Carlisle Companies ( NYSE: CSL ), Trex ( NYSE: TREX ), Azek ( NYSE: AZEK ), Mohawk Industries ( NYSE: MHK ) and Fortune Brands ( NYSE: FBIN ) also declined on Tuesday.

Home Depot ( HD ), the world's biggest home-improvement retailer by revenue, said comparable sales fell 4.6% during the quarter, missing the consensus estimate of a 2.1% decline. Management said extreme weather in California affected results, along with falling prices for lumber.

Looking ahead, the store chain forecast a decline of 2% to 5% in full-year comparable sales. Home Depot ( HD ) also cut its EPS forecast for a decline of 7% to 13%, compared with the prior estimate of a mid-single-digit slide.

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