Cautious Outlook

Underperformance this quarter warrants a more cautious sales outlook

Succinct Summary: Consumer spending trends softened over the course of the first quarter and appear to have remained more subdued in April and May. Home Depot was spooked enough by their underperformance that they reduced guidance for the full year. They now see comp sales declining by 2%-5%. That said, spending and inflation are still resilient. The Fe…