US home improvement retailer The Home Depot has delivered $39.7bn in sales for the fourth quarter (Q4) of FY24, a substantial growth of 14.1% from the same quarter of fiscal 2023.
The company’s comparable sales saw an uptick of 0.8%, and US comparable sales grew 1.3%.
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Net earnings for this quarter stood at $3.0bn, or $3.02 per diluted share, outperforming the $2.8bn or $2.82 per diluted share recorded during the corresponding period of fiscal 2023.
The retailer saw its gross profit rose significantly to $13.03bn, up by 13.3% from Q4 FY23’s $11.50bn.
During the earnings call, Home Depot chair, president and CEO Ted Decker explained that the company experienced widespread engagement across its regions, with 15 out of 19 US regions showing positive comparable sales.
Both Canada and Mexico reported positive comparable sales in local currency.
Decker said: “Our fourth quarter results exceeded our expectations as we saw greater engagement in home improvement spend, despite ongoing pressure on large remodelling projects.
“Throughout the year, we remained steadfast in our investments across our strategic initiatives to position ourselves for continued success, despite uncertain macroeconomic conditions and a higher interest rate environment that impacted home improvement demand.”
In FY24, net sales were $159.51bn – a 4.5% rise from the previous year’s $152.66bn.
The company experienced a slight downturn in comparable sales, which fell 1.8%, mirroring the same decrease in its US market.
The net earnings of Home Depot over the fiscal year saw a minor contraction of 2.2%, totalling $14.80bn compared to $15.14bn in fiscal 2023.
Earnings per diluted share for the fiscal year were reported at $14.91, a decline from the $15.11 in the previous fiscal year.
Nonetheless, the retailer managed to deliver an impressive gross profit of $53.3bn – a 4.6% increase from the previous year’s $50.960bn.
Looking ahead to fiscal 2025, Home Depot has provided guidance anticipating total sales growth of 2.8% and comparable sales growth of 1% for the comparable 52-week period against fiscal 2024’s 53-week year.
The company plans to open 13 new stores and aims for a gross margin of 33.4%.
