Home Depot reported strong Q4 earnings and better-than-expected results for the fiscal year 2024.
The home improvement retailer saw its sales rise by 4.5% to $159.5 billion, while same-store sales in the US fell by 1.8%. The company achieved overall net earnings of $14.8 billion in the fiscal year 2024.
In particular, Q4 was successful with a 14.1% rise in sales to $29.7 billion, while same-store sales inched up by 1.3%. Additionally, the company reported net sales of $3.0 billion.
Ted Decker, Home Depot’s chair, president and CEO, said: “Our fourth quarter results exceeded our expectations as we saw greater engagement in home improvement spend, despite ongoing pressure on large remodeling projects.
“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.”
Despite the strong performance in 2024, the company expects a modest financial outlook for the upcoming year, citing uncertainty in the home improvement market as a reason.
In the upcoming fiscal year, the company expects to see total sales growth rise by 2.8% while diluted earnings per share are expected to fall by 3%.
Richard McPhail, executive vice president and chief financial officer, added on a call: “While there are signs that the home improvement market is on the way toward normalization, uncertainty still remains.
“As we look ahead to fiscal 2025, we expect the underlying momentum in the business that we saw in the back half of 2024 to continue into 2025.”
“However, we are not assuming any meaningful changes to the macroeconomic environment. We expect our consumers will remain healthy.”
As part of its plans, the company, which has over 2,300 stores across North America, will expand its footprint with 13 new locations in 2025.
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