- Home Depot’s (HD) fourth-quarter sales reached $39.7 billion, exceeding the $39.13 billion consensus with a 14.1% year-over-year increase, driven partly by an extra 14th week adding $2.5 billion, though earnings per share of $3.02 missed the $3.04 estimate despite rising from $2.82 last year.
- Fiscal 2024 sales hit $159.5 billion, topping the $158.8 billion forecast with a 4.5% gain, but comparable sales fell 1.8% annually, while net earnings dipped to $14.8 billion from $15.1 billion, with adjusted earnings per share steady at $15.24 versus $15.25.
- CEO Ted Decker emphasized stronger customer engagement in Q4 despite macroeconomic challenges and high interest rates pressuring large projects, attributing the company’s resilience to strategic investments and its workforce, as shares rose 0.72% to $385.16 pre-market.
Home Depot’s (HD) stock edged up $2.74, or 0.72%, to $385.16 in pre-market trading Tuesday, buoyed by fourth-quarter earnings that topped sales forecasts despite a miss on per-share earnings, offering a glimpse into the resilience of the home improvement giant amid a tricky economic landscape. Sales for the quarter hit $39.7 billion, surpassing the $39.13 billion consensus and marking a robust 14.1% jump from the $34.8 billion recorded a year earlier, though $2.5 billion of that gain came from an extra 14th week not reflected in the comparable sales uptick of 0.8% overall and 1.3% in the U.S. Net earnings landed at $3.0 billion, or $3.02 per diluted share – slightly shy of the $3.04 expected – yet up from $2.8 billion and $2.82 per share last year, with the additional week contributing roughly $0.30 to both reported and adjusted earnings, the latter rising to $3.13 from $2.86.
Zooming out to fiscal 2024, Home Depot posted annual sales of $159.5 billion, edging past the $158.8 billion consensus and climbing 4.5% from 2023’s $152.7 billion, though comparable sales dipped 1.8% both overall and in the U.S., reflecting a tougher demand environment. Net earnings for the year settled at $14.8 billion, or $14.91 per diluted share, a step down from $15.1 billion and $15.11 the prior year, while adjusted diluted earnings held nearly steady at $15.24 versus $15.25, buoyed by that extra week’s $0.30 boost. CEO Ted Decker highlighted the quarter’s outperformance as a sign of renewed customer engagement in home improvement spending, even as high interest rates and macroeconomic uncertainty continued to weigh on big-ticket remodeling projects, crediting the company’s strategic investments and workforce for navigating these headwinds.
Home Depot’s results paint a nuanced picture of a sector caught between opportunity and caution. The 14-week quarter’s sales surge – driven partly by timing – masks a softer underlying trend, with full-year comps signaling persistent pressure from elevated borrowing costs that deter homeowners from financing large renovations. Still, the U.S. market’s 1.3% comparable sales growth in Q4 suggests pockets of strength, likely tied to smaller DIY projects or essential repairs, areas where Home Depot’s scale and supply chain prowess shine. Decker’s optimism about positioning for future success reflects a calculated bet on long-term growth, even as the company balances a high-rate environment that’s cooled the housing market – a key driver of its business – against a consumer base showing tentative signs of re-engagement.
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