Home Depot cuts forecasts, signals weakness ahead for big US retailers

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Home Depot cuts forecasts, signals weakness ahead for big US retailers
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Home Depot Inc on Tuesday cut its annual sales forecast and projected a steeper-than-expected decline in profit, stoking fears about inflation-wary consumers trimming discretionary spending as a big earnings week for U.S. retailers rolls out.

Photo d'archives: Le logo de Home Depot est visible à Encinitas, en Californie. /Photo prise le 4 avril 2016/REUTERS/Mike BlakeConsumers moving to smaller projects from larger - earnings callon Tuesday cut its annual sales forecast and projected a steeper-than-expected decline in profit, stoking fears about inflation-wary consumers trimming discretionary spending as a big earnings week for U.S. retailers rolls out.

Shares of the largest U.S.

A shift in focus toward travel, vacations and other services also pinched, driving quarterly comparable sales down 4.5%, bigger than analysts' estimate for a 1.74% drop. "It's definitely a surprise. The speed and magnitude of the weakness is surprising relative to what we were thinking," D.A. Davidson analyst Michael Baker said.

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