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

The Home Depot Announces Fourth Quarter and Fiscal Year 2024 Results

The Home Depot®, the largest home improvement retailer in the world, has released its financial results for the fourth quarter and the entirety of fiscal year 2024, highlighting a remarkable performance despite adverse economic conditions. This report provides insight into the company's financial achievements and strategic outlook moving forward to fiscal year 2025.

Fourth Quarter Highlights

In the fourth quarter of fiscal year 2024, The Home Depot achieved net sales of $39.7 billion, marking an increase of $4.9 billion, or 14.1%, compared to the same period in fiscal year 2023. Comparable store sales rose by 0.8%, with U.S. comparable sales increasing by 1.3%. It's worth noting that the fourth quarter included 14 weeks instead of the usual 13, attributing approximately $2.5 billion to this extended sales period.

Net earnings for the quarter tallied up to $3 billion, translating to €3.02 per diluted share, an increase from the $2.8 billion, or $2.82 per diluted share, recorded during the corresponding quarter of the previous fiscal year. Notably, the extra week contributed around $0.30 to the diluted earnings per share for the quarter.

Furthermore, adjusted diluted earnings per share, which removes certain non-recurring items, stood at $3.13, compared to $2.86 in the prior year quarter. This reflects the management's ongoing commitment to operational efficiency and strategic investment in growth avenues.

Fiscal Year 2024 Performance

For the whole year fiscal 2024, The Home Depot reported net sales of $159.5 billion, a rise of $6.8 billion or 4.5% from 2023. However, comparable sales did witness a dip of 1.8%, a trend noticeable across the home improvement retail sector amid macroeconomic challenges. The net income for the year was reported at $14.8 billion, or $14.91 per diluted share, slightly down from $15.1 billion, or $15.11 per diluted share, the previous year.

Dividend Announcement

In today’s announcement, the company also revealed that its Board of Directors has approved a 2.2% increase in its quarterly dividend, raising it to $2.30 per share, culminating in an annual payout of $9.20 per share. This dividend is scheduled for payment on March 27, 2025, to shareholders recorded by the close of business on March 13, 2025. This marks the 152nd consecutive quarter that The Home Depot has issued a cash dividend, showcasing its consistent financial health and commitment to returning value to its shareholders.

Guidance for Fiscal Year 2025

Looking ahead, The Home Depot has provided guidance for fiscal year 2025, predicting a sales increase of approximately 2.8% and comparable sales growth of about 1% year-over-year. The company anticipates opening around 13 new stores and aims to maintain a gross margin of approximately 33.4%. Their operating margin is projected to be about 13%, with a slight adjustment for some operational changes.

The forecast also indicates a net diluted earnings per share decrease of around 3% compared to fiscal year 2024, as well as a similar decline in adjusted diluted earnings. The company's planned capital expenditures will account for approximately 2.5% of total sales.

Despite the challenges posed by fluctuating economic conditions and high interest rates affecting demand for home improvement projects, CEO Ted Decker expressed optimism regarding their ability to achieve sustainable success through strategic initiatives and a steadfast focus on customer service. Decker extended his gratitude to the employees for their commitment, emphasizing the importance of their roles in delivering exceptional service to customers and communities alike.

As The Home Depot continually adapts to changing market dynamics, investors and stakeholders look forward to assessing how these strategies unfold in the coming fiscal year.