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Make Me Smart with Kai and Molly

Episode 136: VC hype vs. Wall Street

Oct 22, 2019

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Marketplace Tech

Home Depot blames lumber prices for drop in sales

Amy Scott Aug 20, 2019
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A customer's lumber sits on a cart at a Home Depot store on in 2017 in Chicago, Illinois. The company cited lumber price deflation as a reason it trimmed its outlook for 2019.
Scott Olson/Getty Images

The Home Depot had a warning for its investors on Tuesday. Despite posting a healthy $3.48 billion in profits for the second quarter, the home improvement giant cut its sales forecast for the full year. The company blamed the potential effects of tariffs on U.S. consumers for the slowdown, as well as deflated lumber prices. Lumber makes up about 8% of the company’s sales. Prices have fallen sharply since reaching record highs in 2018.

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