Home depot Wall Street’s quarterly on Tuesday tops the expectations of sales, even Advanced interest rates And housing prices reduced the consumer demand for large remodels and price pricer projects.
For the whole year, The company said This is expected to increase 2.8% and comparable sales in total sales, which takes out to increase the impact of one -time factors such as the opening and calendar difference of the store to about 1%. The Home Depot estimated the adjusted income per share, a 2% decline compared to the previous year.
In an interview with CNBC, Chief Financial Officer Richard McFel said “Housing Are still frozen at hostage rates. ,
Home depots estimate that consumers will gradually stop stopping projects McFel said to get used to high interest rates, instead of waiting for them to fall.
“They tell us that their life is moving forward,” he said. “Their families are growing. They are moving forward for a new job. They are increasing their home. They want to upgrade their standard of living. The house is always reformed, and therefore, I think, I think I think Has be around the mentality.
According to a survey by Analysts by LSEG, what the company has reported for the fourth quarter compared to Wall Street’s estimates:
- earnings per share: $ 3.02 vs $ 3.01 expected
- Income: $ 39.70 billion vs $ 39.16 billion is expected
The shares of the home depot increased slightly in premarket trading. The company was making an earning call on Tuesday morning.
In a three -month period ending on February 2, the net income of the home depot climbed $ 2.80 billion, or $ 2.82 per share, or $ 3.0 billion per share, or $ 3.02 per share, In the year-old period. Revenue increased by 14% from $ 34.79 billion in year-old period.
Comparable sales, one metric are also known as similar-store sales, increased by 0.8% in the company. Those results are over Eight consecutive quarters For comparative sale. According to the Strikint, he also exceeded the expectations of analysts’ decline of 1.7%. Consider sales in america Year after year 1.3% increased.
McFel said that the areas hit by Hurricane Helen and Milton contributed about 0.6% to comparable sales.
Customers spent more and visited the home depot stores and website in the quarters than the period of year. The transaction rose by about 8% to 400.4 million from the year-old period. The average ticket in this quarter was $ 89.11, slightly above $ 88.87 in the previous-year quarter.
The home depot has faced a more difficult background to sell supply for home improvement projects. The sales growth in 2023 slowed down, when Covid returned to more specific patterns after a huge hunger of consumers for renewal of home during epidemic. A change to spend on services such as inflation and holidays and restaurants also reduces consumer demand for large projects and pricier items.
In the mid -2023, the leaders of the Home Depot have pinned the company’s problems on a difficult housing market. McPhail told CNBC that the fourth quarter remained the same challenge, as consumers still showed reluctance to sprinkle large projects, such as rebuilding the kitchen or installing new floors.
Despite the interest rate cut by the Federal Reserve, the mortgage rates remain higher. Average price of home sold in January $ 396,900 was 4.8% According to the National Association of Realters, before one year for the month of January and at the highest price.
McFel said the difficult weather in January also damaged the company’s sales, and it was done in some parts of the country in February.
“Where the weather is good, we continue to see the engagement,” he said. “Where the weather is difficult, projects are placed on the shelf.”
Nevertheless, he said that the home depot has focused on methods that can move the needle, such as opening new stores and investing in their e-commerce business.
The strongest quarter of the year for the digital business of home depots, McFel said that online sales in the fourth quarter increased by 9% in the fourth quarter compared to the year-old period. He said that until the investment of the company in fast delivery, especially with customers receiving equipment and power equipment.
McFel said The Home Depot opened 12 new stores in 2024, and it is planning to open 13 new places in the coming year.
There is also a home depot Saw the professionals of the house As one of its major sales drivers. it Purchased SRS distributionA Texas -based company that sells supply to professionals in roofs, pools and landscaping businesses for $ 18.25 billion last year. This marked the biggest acquisition in the history of the company.
McFel said some pro-heey categories such as roof, drywall and lumber saw an increase in sales in the quarter due to pushing to serve the home depots and other domestic professionals, said McFel said.
The shares of the Home Depot closed at $ 382.42 on Monday. After Monday’s closure, the company’s shares have fallen by about 2% so far this year. This trails are behind about 2% profit of S&P 500 during the same period.
This is a developing story. Please check back for updates.
