#USA #Atlanta #financial results #dividend increase #Home Depot

Home Depot Highlights Robust Performance in Fiscal 2024

Home Depot, renowned as the world's largest home improvement retailer, reported substantial results for its fourth quarter and fiscal year 2024. Demonstrating resilience despite economic challenges, the company noted an impressive sales increase and an initiative to enhance shareholder value through a dividend boost.

Financial Overview

In the fourth quarter of fiscal 2024, Home Depot achieved sales of $39.7 billion, reflecting a significant increase of $4.9 billion or 14.1% when compared to the same period in the previous year. Comparable sales rose by 0.8%, with U.S. comparable sales increasing by 1.3%. Notably, the fourth quarter included 14 weeks instead of the standard 13 weeks, contributing an additional $2.5 billion in sales.

Net earnings for the quarter reached $3.0 billion, translating to $3.02 per diluted share, a rise from $2.8 billion or $2.82 per share reported in the fourth quarter of fiscal 2023. Adjusted earnings per share also saw a healthy increase to $3.13, compared to $2.86 in the same quarter the prior year.

For the entirety of fiscal 2024, Home Depot reported total sales of $159.5 billion, marking an increase of $6.8 billion or 4.5% from fiscal 2023. Adjusted diluted earnings edged down slightly to $15.24, compared to $15.25 from the previous year.

Dividend Increase

Home Depot's board of directors has approved a 2.2% hike in its quarterly dividend to $2.30 per share, culminating in an annual dividend of $9.20 per share. This payment is set to be distributed on March 27, 2025, to shareholders of record by March 13, 2025. With this adjustment, Home Depot celebrates its 152nd consecutive quarter of cash dividend payouts.

Looking Ahead: Fiscal 2025 Guidance

As part of its commitment to sustained growth, Home Depot shared its guidance for fiscal 2025, predicting total sales growth of around 2.8%. The company anticipates the addition of approximately 13 new stores throughout the year, alongside expected comparable sales growth of around 1.0%. The projected gross margin for the year stands at 33.4%, with expectations for an operating margin around 13.0%. Despite these optimistic projections, the diluted earnings-per-share are expected to decline by approximately 3%, signifying a potential dip from the previous fiscal year.

Strategic Investments and Economic Challenges

Ted Decker, Chair, President, and CEO of Home Depot, expressed confidence regarding the financial results, stating that they exceeded expectations largely due to increased consumer spending in home improvement, even amidst daunting pressures on larger remodeling projects. Decker highlighted the necessity of continued investments in strategic initiatives to foster long-term success, despite uncertainties in the macroeconomic landscape and elevated interest rates affecting demand for home improvement products.

With over 2,347 retail stores and more than 780 branches operational across the United States, Canada, and Mexico, Home Depot remains poised for progressive growth in the coming year. The ongoing commitment to investing in infrastructure and customer engagement solidifies its status as a key player in the home improvement market.

As the company prepares to discuss these results further in a conference call scheduled for today at 9 a.m. ET, stakeholders remain optimistic about the future trajectory of Home Depot amidst fluctuating economic conditions.

In conclusion, Home Depot's fourth quarter and fiscal 2024 results not only affirm its leadership in the home improvement sector but also signal a robust approach toward overcoming economic adversities while rewarding loyal shareholders.