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Home Depot (NYSE: HD), the leading global retailer in home improvement, has reported its financial results for the fourth quarter and fiscal year 2024. The company experienced a notable rise in sales, reaching $39.7 billion, marking a 14.1% increase from the same period in the previous year. This growth was partly due to an additional week in the quarter, which contributed approximately $2.5 billion to the total sales.

Without this extra week, comparable sales in the U.S. still showed a modest increase of 1.3%. The net earnings for the quarter were $3.0 billion, or $3.02 per diluted share, compared to $2.8 billion, or $2.82 per share, in the previous year. The adjusted earnings per share stood at $3.13, reflecting a 9.4% rise from the prior year.

These results underscore the company’s ability to maintain profitability despite external challenges impacting the home improvement sector. The fiscal year 2024 also closed on a positive note for Home Depot, with total sales amounting to $159.5 billion, a 4.5% increase from the previous year.

However, the comparable sales for the fiscal year showed a decline of 1.8% both globally and in the U.S. Net earnings for the fiscal year were slightly lower at $14.8 billion compared to $15.1 billion in fiscal 2023. Despite these challenges, the company remains committed to its strategic investments and customer service excellence.
 

Home Depot Reports Double Beat with Q4 Results

Home Depot’s fourth-quarter performance exceeded market expectations, particularly in terms of earnings per share (EPS). The reported EPS of $3.02 surpassed the anticipated $3.0, highlighting the company’s strong operational efficiency and effective cost management strategies. The additional week in the quarter provided a significant boost to both sales and earnings, contributing approximately $0.30 to the EPS.

Sales growth was robust, with a 14.1% increase over the previous year, although the comparable sales growth was modest. The company’s ability to outpace expectations in a challenging economic environment speaks to its strategic initiatives and adaptability. The fiscal year results, however, reflected some of the broader market pressures, with a slight decline in net earnings and comparable sales.

Despite these pressures, Home Depot’s leadership remains optimistic about the company’s trajectory. The focus on strategic initiatives, including investments in technology and supply chain enhancements, has positioned the company well for sustained growth. The increase in customer transactions and average ticket size are positive indicators of the company’s market strength and consumer confidence.
 

Home Depot Expects Slight Decline in Earnings for Fiscal 2025

Looking ahead, Home Depot has provided guidance for fiscal 2025, which will be a 52-week year compared to the 53-week fiscal 2024. The company anticipates a total sales growth of approximately 2.8% and a comparable sales growth of around 1.0% for the comparable 52-week period. This guidance reflects a cautious optimism in the face of ongoing economic uncertainties.

The company expects its operating margin to be around 13.0%, with an adjusted operating margin of approximately 13.4%. The tax rate is projected to be about 24.5%, with net interest expenses estimated at $2.2 billion. Home Depot also plans to open approximately 13 new stores, further expanding its footprint and enhancing its market presence.

In terms of earnings, the company projects a slight decline in diluted earnings per share by approximately 3% from the $14.91 reported for fiscal 2024. Similarly, adjusted diluted earnings per share are expected to decline by about 2% from the $15.24 reported for fiscal 2024. These projections account for the anticipated market conditions and strategic investments planned for the year.

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