Earnings DeclineEBIT margins drifted (180 bps) lower to 5.9% of revenues, leading to an earnings decline of (22%).
Housing And Macro EnvironmentMacro housing fundamentals remain soft, mortgage rates have backed up to 7%+, and big ticket discretionary spending remains out of favor.
Valuation RiskThe pace of sales and earnings recovery may not be strong enough to justify the current valuation, posing a risk for the stock.