Home Depot Raises Outlook, Announces $15 Billion Buyback

The home improvement retailer now sees 2023 sales growth of 3.5% to 4.5%

The company also plans to invest at least $1.5 billion in capital projects this year

Home Depot Inc. (HD) on Tuesday raised its outlook for the full year, saying it now expects sales to grow by 3.5% to 4.5% in 2023. The company also announced a $15 billion share buyback program and said it plans to invest at least $1.5 billion in capital projects this year.

The home improvement retailer's shares rose 2.5% in premarket trading following the news. Home Depot has been a beneficiary of the pandemic-fueled surge in home improvement spending. The company's sales grew by 14.1% in 2020 and 11.2% in 2021. However, sales growth slowed to 3.4% in 2022, as the pandemic waned and consumers shifted their spending to other categories.

In a statement, Home Depot CEO Ted Decker said that the company is "well-positioned to continue to grow in 2023." He said that the company is "investing in our business to drive growth and enhance the customer experience."

The company's capital projects include new stores, remodels, and technology upgrades. Home Depot plans to open 100 new stores in 2023, including 60 in the United States and 40 in Canada. The company also plans to remodel 500 stores and invest in new technology, such as self-checkout kiosks and mobile apps.