Home Depot’s business has remained strong even as turbulent economic conditions weigh on consumers’ wallets, CEO Ted Decker told CNBC’s Jim Cramer on Friday.
His comments were in response to Cramer’s question as to whether he had seen the same signs of a recession that FedEx CEO Raj Subramaniam warned about in Mad Money on Thursday.
“Our consumer, our customer, professional and DIYer have been resilient,” Decker said.
The company last month reported earnings and revenue that beat Wall Street’s expectations for the most recent quarter, citing healthy project backlogs despite a flagging housing market and persistent inflation.
“Our customers usually have a high income. They are usually homeowners. And guess what, they’re spending more time in this house, and this house is aging,” Decker said.
He admitted that although the project business has remained stable, the seasonal trend has eased off somewhat.
“It’s tough for us – is that a demand signal because of the weather? We’ve had a rough spring,” Decker said. “Or is it a reaction to pricing or an uncomfortable level of the economy? It’s hard to tease that out.”
However, the CEO reiterated that Home Depot remains confident about its development. “We couldn’t be more optimistic,” he said.
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