Home depot Tuesday is on top on top of three three -month sales expectations, even as elevated interest rates The apartments prices also dimmed the demand of consumer for major remodeling and price projects.
For the whole year ahead of us, The company said He expects that total sales will increase by 2.8% and comparable sales, which take the influence of disposable factors such as opening of stores and differences in the calendar, increase by about 1%. Home depot projected adapted earnings per share will drop about 2% compared to the previous year.
In an interview with CNBC, Richard McPhail’s Chief Financial Director said “Housing It is still frozen in the footsteps of the mortgage. “Still, he said that Home Depot recorded broad growth, because sales rose in about half of its categories of goods and 15 out of its 19 American geographical regions.
Home Depot predicts that consumers will stop rejecting projects because gradually Get used to the larger interest rates, instead of waiting to fall, McPhail said.
“They tell us life is moving,” he said. “Their families grow. They start for a new job. They increase their home. They want to upgrade their lives. Did the long -term rates become a new normal.”
Here’s what the company reported for a fiscal fourth quarter compared to Wall Street estimates, according to an research by LSEG analyst:
- Earnings per share: $ 3.02 relative to $ 3,01
- Income: Expected 39.70 billion USD compared to $ 39.16 billion
Home depot sections have risen slightly in the market store. The company kept a call to make money on Tuesday morning.
In a quarterly period that ended on February 2, the net income of Home Depot went up to $ 3.0 billion, or $ 3,02 per share, with $ 2.80 billion or $ 2,82 per share, In the period of the year. The revenue increased by 14% with $ 34.79 billion in the period before before.
Comparable sales, a metric that is also known as the sale in the same store, increased by 0.8% throughout the company. These results ended Eight consecutive districts a fall in comparable sales. They also exceeded the expectations of analysts of a drop of 1.7%, according to the Streetaccount. Comparable Sales in the United States It increased 1.3% in the year.
The regions hit by Hurricane Helena and Milton contributed about 0.6% for comparable sales, McPhail said.
Customers spent more in the quarter and visited the shops and the Home Depot site and the website compared to the period before it was a year ago. Transactions have increased to 400.4 million, which is more than 8% compared to the period of the year. The average map was $ 89.11 in the quarter, which is $ 88.87 in the quarter of the previous year compared to $ 88.87.
Home Depot faced a heavy background for sale of stocks for home improvement projects. The growth of sales slowed down in 2023, after consumers returned to more typically formed for a huge appetite for the renovation of the house during the forged pandemies. Inflation and switching to consumption on services such as rest and restaurants also alleviated the demand of consumers for larger projects and price items.
Since it was about mid -2023, the Home Depot leaders contacted the company’s problems in the difficult dwelling market. McPhail said CNBC in the fourth quarter, as consumers still showed reluctance to tighten on larger projects, such as the remodeling of the kitchen or installing new floors.
The mortgage rates remained high, despite decreasing interest rates by federal reserves. Medium price of a house for sale in January It was $ 396,900, which is 4.8% From the year before and the highest price ever for the month of January, according to the National Real Estate Association.
A firmer time has also harmed the sale of the company in January, and this is transmitted in February in some parts of the country, McPhail said.
“Where the weather is good, we still see the engagement,” he said. “Where the weather is difficult, the projects are put on the shelf.”
Nevertheless, he said that Home Depot focused on the ways he could move the needle, such as opening new stores and investment in the job of e-trains.
Internet sale has increased by 9% in the fourth quarter compared to the period of the year, said McPhail, the strongest quarter for the Digital Business of Home Depot. This has led to the company’s investment in faster delivery, especially with the obtaining device and electric tools to customers.
McPhail said Home Depot has opened 12 new stores in 2024, and plans to open 13 new locations in the coming year.
Home Depot also has looked at home professionals as one of his main sales drivers. It bought SRS distributionA company headquartered in Texas that sells supplies to professionals at roofing companies, pool and environmental decoration, for $ 18.25 billion last year. This marked the greatest acquisition in the history of the company.
Some difficult categories, such as roof, drywall and wood, have recorded a trimester in a quarter for encouraging Home Depot to better serve performers and other home professionals, McPhail said.
Home depot shares were closed on Monday $ 382.42. From Monday near, the company’s shares have so far fallen around 2% this year. This path behind the S&P 500 of approximately 2% of gains during the same period.
This is a development story. Please check updates.
