The Home Depot exceeded expectations and saw quarterly sales rise 6% year over year as their SRS Distribution acquisition, hurricane-related recovery efforts and better-than-expected weather in many parts of the country led to increased home improvement supply demand. However, Home Depot cautioned that consumers are still waiting on doing more significant projects as they wait for lower interest rates in an uncertain economy. Further details from the call include:

Inside the Numbers

  • Home Depot reported $40.2 billion in sales for the third quarter of fiscal 2024, beating estimates of $39.2 billion and an increase of 6.6% from the third quarter of fiscal 2023; adjusted earnings per share were $3.78 versus $3.64 estimated. 
  • Comparable same-store sales decreased 1.3%. In the U.S., this decrease was 1.2%. 
  • Home Depot updated its fiscal 2024 guidance to increase almost 4% year over year, up from the 2.5–3.5% that was previously expected, and comparable sales to decline approximately 2.5% instead of the 3–4% previously estimated. It’s also important to note that fiscal 2024 guidance includes 53 weeks of operating results instead of 52 weeks.

Key Takeaways

  • SRS Distribution Acquisition Is Paying Off: SRS should deliver about $6.4 billion in full-year sales, pushing group-wide revenues 4% higher compared to 2023.
  • Hurricane Recovery Continues: Outdoor supplies related to hurricane repairs significantly contributed to overall sales.
  • Warmer Weather Increases Demand: Unusually exceptional weather for this time of year increased demand for certain home improvement products, particularly seasonal goods.

Product Category News

  • Seasonal Goods: Warmer weather led to increased sales for seasonal goods as consumers looked to enjoy outdoor activities more this late in the year.   
  • Outdoor Projects: Because of better-than-expected weather, consumers and Pros could tackle certain outdoor projects before colder weather/winter moves in. 
  • Halloween Decorations: Home Depot’s Halloween assortment continues to grow and drive bigger sales year over year. 
  • Paint: This quarter, jobsite delivery and other Pro-focused partnerships were big contributors to the Paint department.

Remember, this analysis is based on publicly available information and represents our interpretation of the data. We encourage you to conduct your own research and analysis to develop marketing strategies best-suited for your specific brand and target audience.

At Porchlight, we help home improvement retailers and brands stay top-of-mind, enhance digital experiences and make products shine brighter on shelves. If you know anyone needing our expertise and support, please forward our emails to them. 

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