Home Depot reported better-than-expected quarterly earnings on Tuesday, despite challenges posed by high interest rates and housing prices that have dampened consumer demand for large home improvement projects. For the fiscal fourth quarter, the company posted earnings per share of $3.02, slightly above the expected $3.01, and revenue of $39.70 billion, surpassing the anticipated $39.16 billion. This marks an end to eight consecutive quarters of declining comparable sales, with a modest increase of 0.8% across the company and 1.3% in the U.S.
Home Depot’s Chief Financial Officer, Richard McPhail, noted that while the housing market remains constrained by mortgage rates, the company experienced broad-based growth. Sales increased in about half of its merchandise categories and in 15 of its 19 U.S. geographic regions. McPhail also highlighted the role of weather-related impacts, with hurricanes contributing approximately 0.6% to comparable sales.
Looking ahead, Home Depot anticipates a 2.8% growth in total sales and a 1% increase in comparable sales for the full year. However, adjusted earnings per share are projected to decline by about 2% compared to the previous year. The company continues to invest in its e-commerce platform, which saw a 9% increase in online sales during the fourth quarter, and plans to open 13 new stores in the coming year.
Despite a challenging environment for home improvement sales, Home Depot remains focused on serving both DIY customers and home professionals, as evidenced by its acquisition of SRS Distribution and growth in pro-heavy categories like roofing and lumber. — news from CNBC