Strong sales highlight Home Depot's Q4 2024 results
Home improvement spending has been tight for some time now, but it appears the notches on the toolbelt may be loosening.
According to Home Depot's latest financial report, sales for the fourth quarter of fiscal 2024 were $39.7 billion, an increase of $4.9 billion (or 14.1 percent) from the fourth quarter of fiscal 2023. Comparable sales for the fourth quarter of fiscal 2024 increased 0.8 percent, breaking a streak of eight straight quarters of declines. Comparable sales in the U.S., meanwhile, increased 1.3 percent.
HD's net earnings for the fourth quarter of fiscal 2024 were $3 billion, compared with net earnings of $2.8 billion in the same period of fiscal 2023.
“Our fourth quarter results exceeded our expectations as we saw greater engagement in home improvement spend, despite ongoing pressure on large remodeling projects,” said Ted Decker, chair, president and CEO. “Throughout the year, we remained steadfast in our investments across our strategic initiatives to position ourselves for continued success, despite uncertain macroeconomic conditions and a higher interest rate environment that impacted home improvement demand.”
Home Depot also released it fiscal 2024 results, which showed positive news for the retail giant as well. Sales for fiscal 2024 were $159.5 billion, an increase of $6.8 billion (or 4.5 percent) from fiscal 2023. However, overall comparable sales for fiscal 2024 decreased 1.8 percent, and comps in the U.S. decreased by the same amount.
Net earnings for fiscal 2024 were $14.8 billion, compared with net earnings of $15.1 billion in fiscal 2023.
HD also shared that 10 if its 16 departments had positive comps, and that the company hauled in record sales for appliances and gift center events.
Home Depot shared the following guidance for fiscal 2025, a 52-week year compared to fiscal 2024, which was a 53-week year:
- Total sales growth of approximately 2.8 percent.
- Comparable sales growth of approximately 1 percent for the comparable 52-week period.
- Approximately 13 new stores.
- Gross margin of approximately 33.4 percent.
- Operating margin of approximately 13 percent.
- Adjusted(1) operating margin of approximately 13.4 percent.
- Tax rate of approximately 24.5 percent.
- Net interest expense of approximately $2.2 billion.
- Capital expenditures of approximately 2.5 percent of total sales.
Read more about Home Depot's latest financial figures here.
