American home improvement retailer The Home Depot has recorded a marginal sales growth of 0.6% in the second quarter (Q2) of the fiscal year 2024, reaching $43.2bn, despite a challenging economic climate and a decrease in comparable sales.
The sales figure includes a contribution of $1.3bn from the recent acquisition of SRS Distribution, accounting for nearly six weeks of sales within the quarter.
Comparable sales for the quarter declined by 3.3%, with a slightly steeper decrease of 3.6% in the US market.
During the quarter, Home Depot posted operating income of $6.5bn, a slight decrease from the $6.6bn recorded in Q2 of fiscal 2023.
Its operating margin also saw a small contraction, from 15.4% in the previous year to 15.1% in the current quarter.
The company’s net earnings for the quarter stood at $4.6bn, compared to $4.7bn in the second quarter of fiscal 2023.
Its earnings per diluted share were $4.60, a slight decrease from $4.65 per diluted share in the same period of the previous year.
Adjusted diluted earnings per share for the quarter were $4.67, compared to $4.68 in the second quarter of fiscal 2023.
Home Depot chair, president and CEO Ted Decker said: "The underlying long-term fundamentals supporting home improvement demand are strong.
“During the quarter, higher interest rates and greater macro-economic uncertainty pressured consumer demand more broadly, resulting in weaker spend across home improvement projects.
“However, the team continued to navigate this unique environment while executing at a high level. I would like to thank our associates for their hard work and dedication to serving our customers and communities.”
Looking ahead, Home Depot anticipates total sales for the full fiscal year 2024 to increase by between 2.5% and 3.5%, including the impact of the 53rd week.
However, comparable sales are expected to decline by 3% to 4% for the 52-week period compared to fiscal 2023.
The company also plans to open 12 new stores over this fiscal year.
As of the end of the second quarter, The Home Depot operated a total of 2,340 retail stores and more than 760 branches.
