Home Depot reported a mixed financial outcome as it exceeded earnings estimates but faced a fifth consecutive quarterly decline in revenue, highlighting a persistent drop in demand for home improvement. Despite the downturn, the company announced a 7.7% increase in its dividend to $2.25/share, signaling confidence in its financial health. However, Home Depot's forecast for 2024 indicates sales below Wall Street estimates, attributing the sluggish outlook to a continued decrease in consumer spending on home improvement projects amid economic uncertainties. The company's U.S. same-store sales also missed expectations, with a -4% performance compared to -3.5% in the previous quarter, further reflecting the challenging market conditions. This performance comes after a period where Home Depot saw significant growth, with a 39% increase in sales and a 37% rise in profit over four years, despite a 4% dip in U.S. sales in 2023. Additionally, Home Depot managed to reduce its inventory to 75 days, just 2 days above its 2019 level, which in turn drove free cash flow growth of 5% despite a 17% drop in profit.
Home Depot $HD, opens new tab forecast full-year results below analysts' estimates on Tuesday, signaling that lackluster demand would continue to affect the company this year as people tighten spending on home remodeling amid sticky inflation. https://t.co/rVQggjRR7w https://t.co/Gt3eSJBuQe
Home Depot Sales Slide For Fifth Quarter On Weak Housing Demand https://t.co/P2wL6vu7K4
Depot struggled with inventory throughout post Covid period & was relative laggard. But with this Q, inventory is back to 75 days, just 2 days above where it was in 2019. That in turn is drove free cash flow, which grew 5% despite 17% drop in profit. $HD
Depot US comp came in at -4% vs -3.5% in Q3, but traffic improved sequentially. On 4-year stack, traffic was positive again at +0.7% after modest dip in Q3, in sign business remains healthy. Deterioration in comp from Q3 came from ticket. $HD $LOW $XLY
Home Depot forecasts weak 2024 results as demand fails to pick up https://t.co/JNwd9xD4kT https://t.co/xxTPmBjOX9
Home Depot beats earnings, sales estimates even as consumers take on smaller home improvement projects https://t.co/ZNZWMZfjwj
Home Depot $HD increased the quarterly dividends by 7.70% to $2.25/share This is the 16th consecutive annual dividend increase for this dividend achiever https://t.co/8pehYBOepY
Normalisation was key word at Depot in 2023. Over 4 years, remarkable that biz of this size grew sales 39% profit 37%, even after 4% US dip in 2023. And if you believe forecast 2024 comp of -1%, $HD has reached base to grow from again. $LOW $XLY https://t.co/fyQtObyFsA
$HD Home Depot Sales Drop For Fifth Straight Quarter On Weak Demand - BBG https://t.co/wfbDYklfIS
Home Depot hikes dividend by 7.7%. $HD
Home Depot reports a fifth consecutive quarterly decline in revenue, underscoring a drop in demand for house improvement https://t.co/C5PvTQ9GoL
⚠️ HOME DEPOT FORECASTS 2024 SALES BELOW ESTIMATES ON SLOWING DEMAND (Reuters) Home Depot forecast annual sales below Wall Street estimates on Tuesday, signaling that lackluster home-improvement demand would continue to affect the company this year as people tighten spending on… https://t.co/6xm9JQVRbx
Home Depot’s stock drops after U.S. same-store sales miss, downbeat outlook https://t.co/Ikbqd36WqC
⚠️ JUST IN: *HOME DEPOT BEATS EARNINGS ESTIMATES EVEN AS CONSUMERS TAKE ON SMALLER HOME IMPROVEMENT PROJECTS $HD https://t.co/jfAhG7Ffcv
Home Depot is about to report earnings. Here's what to expect https://t.co/XW8iCgYk2V
Home Depot’s Sales Are Expected to Fall. Here’s Where the Upside Could Be. https://t.co/dPzKpsqOqg