• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

Home Depot earnings beat Wall Street estimates as retailer breaks comparable sales losing streak

by February 26, 2025
written by February 26, 2025

Home Depot on Tuesday topped Wall Street’s quarterly sales expectations, even as elevated interest rates and housing prices dampened consumer demand for large remodels and pricier projects.

For the full year ahead, the company said it expects total sales to grow by 2.8% and comparable sales, which take out the impact of one-time factors like store openings and calendar differences, to increase by about 1%. Home Depot projected adjusted earnings per share will decline about 2% compared with the prior year.

In an interview with CNBC, Chief Financial Officer Richard McPhail said “housing is still frozen by mortgage rates.” Yet he said Home Depot saw broad-based growth, as sales increased in about half of its merchandise categories and 15 of its 19 U.S. geographic regions.

Home Depot anticipates consumers will stop putting off projects as they gradually get used to higher interest rates, rather than waiting for them to fall, McPhail said. 

“They tell us their lives are moving on,” he said. “Their families are growing. They’re moving for a new job. They’re upsizing their home. They want to upgrade their standard of living. Home improvement always persists, and so the question, I think, will be around the mindset of whether long-term rates have gotten to a new normal.”

Here’s what the company reported for the fiscal fourth quarter compared with Wall Street’s estimates, according to a survey of analysts by LSEG:

Home Depot shares were up nearly 5% in midday trading. The company was holding an earnings call on Tuesday morning.

In the three-month period that ended Feb. 2, Home Depot’s net income climbed to $3.0 billion, or $3.02 per share, from $2.80 billion, or $2.82 per share, in the year-ago period. Revenue rose 14% from $34.79 billion in the year-ago period.

Comparable sales, a metric also known as same-store sales, increased 0.8% across the company. Those results ended eight consecutive quarters of falling comparable sales. They also exceeded analysts’ expectations of a decline of 1.7%, according to StreetAccount. Comparable sales in the U.S. increased 1.3% year over year.

Regions hit by hurricanes Helene and Milton contributed about 0.6% to comparable sales, McPhail said.

Customers spent more and visited Home Depot’s stores and website more in the quarter compared with the year-ago period. Transactions rose to 400.4 million, up nearly 8% from the year-ago period. The average ticket was $89.11 in the quarter, up slightly from $88.87 in the prior-year quarter.

Home Depot has faced a more difficult backdrop for selling supplies for home improvement projects. Sales growth slowed in 2023, after consumers’ huge appetite for home renovations during the Covid pandemic returned to more typical patterns. Inflation and a shift back to spending on services like vacations and restaurants also dinged consumer demand for larger projects and pricier items.

Since roughly the middle of 2023, Home Depot’s leaders have pinned the company’s problems on a tougher housing market. McPhail told CNBC that the same challenge persisted in the fourth quarter, as consumers still showed reluctance to splurge on bigger projects, such as redoing a kitchen or installing new flooring.

Mortgage rates have remained high, despite interest rate cuts by the Federal Reserve. The median price of a home sold in January was $396,900, up 4.8% from the year before and the highest price ever for the month of January, according to the National Association of Realtors.

Tougher weather also hurt the company’s sales in January, and that’s carried into February in some parts of the country, McPhail said.

“Where weather is good, we continue to see engagement,” he said. “Where weather is tough, projects get put on the shelf.”

Even so, he said Home Depot has focused on ways it can move the needle, such as opening new stores and investing in its e-commerce business. 

Online sales rose 9% in the fourth quarter compared with the year-ago period, McPhail said, the strongest quarter of the year for Home Depot’s digital business. He chalked that up to the company’s investments in faster deliveries, particularly with getting appliances and power tools to customers.

McPhail said Home Depot opened 12 new stores in 2024, and it plans to open 13 new locations in the coming year. 

Home Depot has also looked to home professionals as one of its major sales drivers. It bought SRS Distribution, a Texas-based company that sells supplies to professionals in the roofing, pool and landscaping businesses, for $18.25 billion last year. It marked the largest acquisition in the company’s history.

Some pro-heavy categories, such as roofing, drywall and lumber, saw sales increases in the quarter because of Home Depot’s push to serve contractors and other home pros better, McPhail said.

Shares of Home Depot closed Monday at $382.42. As of Monday’s close, the company’s shares have fallen about 2% so far this year. That trails behind the S&P 500′s approximately 2% gains during the same period.

This post appeared first on NBC NEWS
0 comment
0
FacebookTwitterPinterestEmail

previous post
House DOGE hearing erupts over Democrat deeming Trump ‘grifter in chief,’ referring to ‘President Musk’
next post
FBI investigating claims of Comey-era ‘honeypot’ operation against Trump 2016 campaign: report

related articles

Krispy Kreme stock plunges after doughnut chain pauses...

May 8, 2025

UnitedHealthcare sued by shareholders over reaction to CEO’s...

May 8, 2025

NBA star Russell Westbrook launches AI-enabled funeral planning...

May 7, 2025

AMD CEO calls China a ‘large opportunity’ and...

May 7, 2025

Judge allows lawsuit over Burger King’s Whopper ads...

May 7, 2025

Amazon’s Zoox robotaxi unit issues software recall after...

May 6, 2025

Rite Aid files for second bankruptcy in two...

May 6, 2025

Skechers to be acquired by 3G Capital in...

May 6, 2025

Temu halts shipping direct from China as de...

May 4, 2025

Jeff Bezos discloses plan to sell up to...

May 3, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Trump says he ‘felt very comfortable’ during address to Congress, touts positive coverage from ‘fake news’

    March 6, 2025
  • Retailers saw a dismal fall quarter. The election seems to be turning things around.

    November 27, 2024
  • Kamala Harris’ tough words on Iran confounds critics

    October 8, 2024
  • Standard Chartered to repurchase $1.5B in shares after reporting 18% profit surge

    February 21, 2025
  • Apple COO engages with Chinese officials amid US-China tensions and geopolitical strains ahead of iPhone 16 launch

    July 24, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,432)
  • Investing (593)
  • Stock (735)

Latest Posts

  • ‘Squad’ Dems demand end to US investigation into anti-Israel weapons embargo

    December 26, 2024
  • Affordable Chinese cars disrupt BMW and Mercedes sales in Mexico

    December 27, 2024
  • ApeCoin and Akita Inu: ApeCoin dropped to 0.570 on Monday

    August 13, 2024

Recent Posts

  • ABC’s shameless debate didn’t even survive its own fact-check

    September 20, 2024
  • AUDUSD and AUDNZD: AUDNZD continues its pullback on Friday

    September 6, 2024
  • ‘New Golden Age’: Republican lawmakers ecstatic as Trump takes office with slate of new orders

    January 20, 2025

Editor’s Pick

  • DAVID MARCUS: ‘Hamilton’ cancels itself as the Left continues to divide us

    March 6, 2025
  • What is an autopen? The signing device at the heart of Trump’s attacks on Biden pardons

    March 20, 2025
  • Kennedy family members denounce RFK Jr.’s decision to endorse Trump as a ‘betrayal of values’

    August 25, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms and Conditions
  • Email Whitelisting

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock