The Home Depot reported better-than-expected Q4 2024 earnings, but guidance for 2025 was lowered to only 2.8% sales growth. Fiscal 2024 yearly statistics were also released, and while the extra week in the fiscal calendar helped, the ongoing pressure on large remodeling projects from high interest rates and low consumer confidence was also evident. Further details from the call include:
Inside the Numbers
- Home Depot reported $39.7 billion in sales for the fourth quarter of fiscal 2024, beating estimates of $39.14 billion and an increase of 14.1% from the fourth quarter of fiscal 2023; adjusted earnings per share were $3.13 versus $3.04 estimated.
- Comparable same-store sales increased .8%. In the U.S., this increase was 1.3%.
- With the end of the fourth quarter, sales for fiscal year 2024 were $159.5 billion, an increase of 4.5% from fiscal 2023. However, comparable sales for fiscal 2024 decreased 1.8%. In the U.S. this decrease was also 1.8%. Adjusted diluted earnings per share for fiscal 2024 were $15.24 compared with adjusted diluted earnings per share of $15.25 in fiscal 2023.
Key Takeaways
- Fast Delivery: Faster delivery speeds across more products, coupled with stores offering more delivery options, has added up to the fastest delivery speeds Home Depot have ever had.
- SRS Distribution Paying Off: After Home Depot acquired them, SRS contributed $6.4 billion for the seven months Home Depot owned them in 2024. This positive trend should continue in 2025.
- Continued Focus on Pro Customers: These professional relationships are so important, and Home Depot continues to focus on new ways to gain their market share and continue positive comps.
Product Category News
- Excellent Comp Sales Across the Board: 10 of Home Depot’s 16 departments posted positive comps.
- Pro-Heavy Categories Excelled: Gypsum, decking, concrete and fencing were particular standouts.
- Gearing Up for Spring 2025: New products in categories like live goods and outdoor power equipment are sure to excite customers this spring.
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.
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Additional Resources
The Home Depot’s Q4 2024 Earnings Report: https://ir.homedepot.com/~/media/Files/H/HomeDepot-IR/press-release/q4-2024-earning-release.pdf