Home Depot has narrowly beaten Wall Street’s fourth-quarter earnings estimates, marking an end to eight consecutive quarters of declining comparable sales. The home improvement retailer reported positive comparable sales, driven by broad-based growth across its merchandise categories and 15 U.S. geographic regions.
Despite high interest rates and housing prices challenging the businesses of Home Depot and its rival Lowe’s, the company topped Wall Street’s quarterly sales expectations. Chief Financial Officer Richard McPhail attributed the growth to consumers’ determination to upgrade their standard of living, despite higher mortgage rates.
Home Depot anticipates a gradual shift in consumer behavior as they adapt to higher interest rates, rather than waiting for them to fall. The company expects total sales to grow by 2.8% and comparable sales to increase by about 1% in the full year ahead. Home Depot shares closed on Tuesday at $393.29, up nearly 3%.
The retailer’s net income climbed to $3.0 billion in the fourth quarter, with revenue rising 14% from the same period last year. Comparable sales increased 0.8%, exceeding analysts’ expectations of a decline of 1.7%. Online sales rose 9% in the fourth quarter, driven by investments in faster deliveries and e-commerce.
Home Depot’s focus on serving home professionals has also contributed to its growth, with sales increases in pro-heavy categories such as roofing, drywall, and lumber. The company plans to open 13 new stores in the coming year, following the opening of 12 new locations in 2024.
The company’s shares have fallen about 2% so far this year, trailing behind the S&P 500’s approximately 2% gains during the same period.
Source: https://www.cnbc.com/2025/02/25/home-depot-hd-q4-2024-earnings.html