Home Depot is the world’s largest home improvement retailer. It announced its financial results for the third quarter of fiscal 2024. The results show resilience amid economic challenges. The company achieved sales of $40.2 billion, reflecting a 6.6% growth compared to last year. However, comparable sales dipped by 1.3%, with a 1.2% decline in the U.S. market.
Key Financial Highlights for Q3 2024:
- Operating income remained steady at $5.4 billion, with an operating margin of 13.5%.
- On an adjusted basis, operating income stood at $5.6 billion, with an adjusted operating margin of 13.8%.
- Net earnings were $3.6 billion, translating to $3.67 per diluted share, slightly down from $3.8 billion or $3.81 per diluted share in Q3 2023.
- Adjusted diluted earnings per share for the quarter were $3.78, compared to $3.85 in the prior year.
CEO Insights:
Ted Decker, Chair, President, and CEO of Home Depot, expressed optimism, stating, “Despite ongoing macroeconomic uncertainty, our performance exceeded expectations. We witnessed increased customer engagement, particularly in seasonal goods and outdoor projects, partly driven by post-hurricane recovery efforts.”
Updated Fiscal 2024 Guidance:
Home Depot has revised its guidance for the fiscal year to reflect improved projections:
- Total sales are expected to increase by approximately 4%, including the impact of an additional 53rd week.
- The 53rd week is estimated to add $2.3 billion in sales, while Sales Related Services (SRS) are anticipated to contribute an additional $6.4 billion.
- Comparable sales for the standard 52-week period are projected to decline by 2.5%.
- The company plans to open around 12 new stores by year-end.
- Adjusted diluted earnings per share for the 53-week fiscal year are forecasted to decline by 1%, with the extra week contributing approximately $0.30 per share.
Operational Footprint:
Home Depot continues to expand its footprint, operating 2,345 stores across the U.S., Canada, and Mexico, along with 780 branches in various regions. The retailer employs over 465,000 associates, underscoring its significant role in the retail and construction sectors.
Information sourced from Home Depot’s official press release click here.
