Home Depot Reveals Q4 and FY2024 Performance
The global home improvement retail giant, The Home Depot, recently disclosed its financial performance for the fourth quarter and fiscal year 2024. The fourth quarter of 2024 saw sales totaling $39.7 billion, a substantial increase of $4.9 billion or 14.1% compared to the same period in 2023. Comparable sales in the U.S. rose by 1.3%, with the quarter comprising 14 weeks, including an extra week that contributed around $2.5 billion in sales. Net earnings for the quarter stood at $3.0 billion, reflecting a growth of $0.2 billion from the preceding year. Adjusted diluted earnings per share for Q4 2024 amounted to $3.13, displaying an improvement over the $2.86 reported in Q4 2023.
For the overall fiscal year 2024, The Home Depot recorded sales of $159.5 billion, marking a $6.8 billion increase from fiscal 2023. While comparable sales witnessed a 1.8% decline, net earnings concluded at $14.8 billion. Adjusted diluted earnings per share for fiscal 2024 were $15.24. Despite macroeconomic uncertainties and a changing landscape due to higher interest rates, the CEO, Ted Decker, expressed satisfaction with the company’s performance. Decker acknowledged the efforts of Home Depot associates in catering to customer needs and fostering community ties.
In line with its commitment to shareholder returns, The Home Depot’s board declared a 2.2% rise in the quarterly dividend to $2.30 per share, equating to an annual dividend of $9.20 per share. The dividend payout is set for March 27, 2025. Additionally, The Home Depot provided guidance for fiscal 2025, anticipating a total sales growth of approximately 2.8% and comparable sales growth of around 1.0%. The company aims to open 13 new stores and expects a gross margin of 33.4%. Operating margins are projected to be around 13.0%, keeping the adjusted operating margin at about 13.4%. With a tax rate around 24.5%, net interest expenses are expected to be approximately $2.2 billion. Diluted earnings per share are predicted to decline by 3%, with adjusted diluted earnings per share expected to drop by 2% compared to fiscal 2024.
It is essential to note that The Home Depot’s financial results are prepared according to U.S. generally accepted accounting principles (GAAP). Furthermore, the company utilizes adjusted operating income, adjusted operating margin, and adjusted diluted earnings per share as non-GAAP financial metrics. The Home Depot anticipates a prosperous fiscal year 2025 and aims to continue its trajectory of success in the competitive home improvement retail market.
