Tomahawk, WI 2/24/2014 (Basicsmedia) –  Bad weather has been blamed on the poor showing of many retail chains, will it also affect The Home Depot, Inc. (NYSE:HD)’s fourth quarter results? The question will be answered when the company announces its fourth quarter results tomorrow.

Harsh Weather Or Bad Economy?

The Home Depot, Inc. (NYSE:HD) had gained on the improvement in the housing sector in 2013, the company had even revised its outlook for the balance quarter upwards on the back of strong performance in the third week. Total sales were up by more than 7% in 3Q2013 year-on-year basis. On top of this, cost cutting measures implemented by the company increased its profit margins. The demand remained strong in October on the back of low mortgage rates and strong consumer confidence. November and December saw a slowdown. While sales of new homes were recorded at 463,000 in October, 2013, the figures dipped to 445,000 and 414,000 in November and December respectively. Sales of existing homes also dipped across the U.S. These could adversely affect the results of the fourth quarter as the company depends very heavily upon housing sales figures. Was this on account of the bad weather or the general macroeconomic factors? If bad weather was the cause, there is some good news for investors of The Home Depot, Inc. (NYSE:HD). This pent up demand may get released in the coming month.

Expansion Plans:

Though The Home Depot, Inc. (NYSE:HD) is proceeding with cost reduction programs, it is also planning on upgrading its facilities, particularly by adding more seasonal workers and adding more fulfillment centers across the U.S. The company is planning on spending $300 million on building new fulfillment centers as well as a new material handling system. The focus is on same-day deliveries and once implemented, this will boost its online presence. The Home Depot, Inc. (NYSE:HD) also has announced plans to add 80,000 seasonal workers across its 2,200 stores.

The cost reduction measures will ensure that the profit margins stay on course during the fourth quarter though sales could be impacted.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.