Home Depot, the US home improvement retailer, reported a 14.1% increase in revenue year-over-year to $39.7 billion for its fourth quarter, slightly beating Wall Street’s low expectations. Adjusted earnings per share grew to $3.13, up from $2.86 last year and above estimates of $3.04.
The company has been struggling due to high interest rates and cautious spending by consumers on major renovation projects. However, Home Depot expects total net sales to grow 2.8% in fiscal year 2025, while same-store sales growth is expected to increase by 1%.
Despite the challenges, Home Depot’s fourth-quarter results showed some benefits from hurricanes, which boosted sales growth by 60 basis points. The company also saw increased foot traffic and average ticket size.
Home Depot’s CEO, Ted Decker, attributed the results to “greater engagement in home improvement spend” despite ongoing pressure on large remodeling projects. The company has diversified its supply chain over the past six or seven years, which it believes will help it manage through a tariff environment that could impact the industry broadly.
The company’s stock reversed early losses on Tuesday and gained more than 3.5% in afternoon trading. Tariffs imposed by the Trump administration are expected to be a top concern for Home Depot and rival Lowe’s, with potential impacts on costs and consumer demand.
Home Depot’s full-year results showed revenue growth of 4.5% year-over-year to $159.51 billion, but same-store sales dropped for the full year, down 1.8%. The company’s adjusted earnings per share for the full year were $14.91, which beat Wall Street estimates.
Source: https://finance.yahoo.com/news/home-depot-posts-revenue-beat-as-home-improvement-challenges-come-into-focus-130056044.html