Financial Data and Key Metrics Changes - Total sales for Q3 2024 were $40.2 billion, an increase of 6.6% from the same period last year. Comparable sales declined by 1.3%, with U.S. stores experiencing a negative comp of 1.2% [8][40] - Adjusted diluted earnings per share were $3.78, down from $3.85 in the same quarter last year, reflecting a decrease of approximately 2% [8][44] - Gross margin was approximately 33.4%, a decrease of 40 basis points from the previous year, primarily due to the mix impact from the SRS acquisition [41][42] - Operating margin for the quarter was 13.5%, compared to 14.3% in Q3 2023 [42] Business Line Data and Key Metrics Changes - Comp transactions decreased by 0.6%, and comp average ticket decreased by 0.8%. Big ticket comp transactions (over $1,000) were down 6.8% compared to the previous year [31] - Pro sales outpaced DIY sales, with pros engaging with the Pro Ecosystem showing the strongest performance [32] - Seasonal categories such as power, outdoor garden, building materials, indoor garden, and paint posted positive comps, while lumber, plumbing, and hardware were above the company average [30] Market Data and Key Metrics Changes - Four out of 19 U.S. regions delivered positive comps, with Mexico and Canada posting comps above the company average in local currency [9] - Hurricane-related sales contributed approximately $200 million, positively impacting total company comps by about 55 basis points for the quarter [40] Company Strategy and Development Direction - The company is focused on creating the best interconnected experience and growing Pro wallet share through differentiated capabilities and new store openings [12][13] - Investments in supply chain facilities and website enhancements aim to improve delivery speeds and customer engagement [14][15] - The company is committed to supporting the growth of the SRS business and leveraging cross-sale opportunities [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged continued macroeconomic uncertainty and its impact on larger remodeling projects due to higher interest rates [11][81] - The updated guidance for fiscal 2024 reflects better-than-expected performance in Q3 and anticipated hurricane-related demand in Q4, with total sales growth expected to be approximately 4% [12][48] - Management remains optimistic about growth opportunities and is committed to investing in capabilities to strengthen competitive positioning [18][49] Other Important Information - The company opened five new stores, bringing the total store count to 2,345, with merchandise inventories at $23.9 billion, up approximately $1.1 billion from the previous year [45] - The effective tax rate for the quarter was 24.4%, compared to 23.3% in Q3 2023 [44] Q&A Session Summary Question: Impact of hurricane-related sales on overall performance - Management noted that hurricane-related sales contributed approximately 55 basis points to Q3 performance, with a mix of DIY and pro sales [54][55] Question: Market share performance relative to the industry - Management indicated that the company took market share, outperforming competitors in several product categories, particularly in seasonal and building materials [75][77] Question: Future outlook on home improvement demand - Management expressed that while macroeconomic uncertainties persist, there are signs of potential recovery in home improvement demand as interest rates stabilize [101][104] Question: Tariff impacts on sales - Management stated that any new tariffs would have an industry-wide impact, but the company is well-prepared to manage through such changes due to its sourcing strategies [108][109]

Analyst’s Disclosure: I/we have a beneficial long position in the shares of HD, LOW, JNJ, TFC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The contents of this article, my previous articles, and my comments are for informational purposes only and may not be considered ...

Following a raucous trading week that continued into Monday, which demonstrated a big relief rally that came after the 2024 General Election, pre-market futures are flat at this hour. It’s also the single-busiest day of Q3 earnings season, with nearly 800 companies reporting.We see no economic reports hitting the tape today, though we expect to hear statements from Fed Governor Christopher Waller, Philadelphia Fed President Patrick Harker and Richmond President Tom Barkin. Tomorrow morning we’ll get a new I ...

Home Depot expects a smaller decline in annual store sales following better-than-expected performance over the past three months, which was partly driven by hurricane recovery efforts. "As weather normalized, we saw better engagement across seasonal goods and certain outdoor projects as well as incremental sales related to hurricane demand," CEO Ted Decker said in the company's earnings release Tuesday. Decker told analysts Tuesday that the company's third-quarter performance exceeded expectations despite " ...

Core Insights - Home Depot's focus on the professional market remains strong despite a decline in consumer spending on home improvement [1][2] - The company reported a 6.6% year-over-year increase in quarterly sales, reaching $40.2 billion, and raised its full-year outlook [3] Company Strategy - Home Depot has invested billions over the past five years to enhance its professional offerings, including new distribution centers and improved supply chain logistics [3] - The company is shifting its focus to B2B demand among trade professionals, which has shown resilience amid economic uncertainty [2][4] Digital Transformation - A key aspect of Home Depot's strategy is its digital overhaul, providing pros with a faster shopping experience, job site deliveries, bulk pricing, and personalized accounts [5] - The company has ramped up workforce training to better support professional clients, ensuring employees can address technical questions and recommend tailored solutions [6] Market Dynamics - The pro market is inherently more stable due to contractual obligations of commercial clients, which helps maintain a steady demand pipeline [4] - Home Depot's pro ecosystem has shown growth across 17 markets, with strong performance in lumber, plumbing, and hardware [7] Recent Developments - Earlier this year, Home Depot acquired SRS for $18.2 billion, enhancing its distribution capabilities for roofing and construction projects [8] - Despite the positive sales growth, the company has experienced eight consecutive quarters of negative comparable sales and anticipates opening around a dozen new stores this fiscal year [9]

Home Depot (HD) reported $40.22 billion in revenue for the quarter ended October 2024, representing a year-over-year increase of 6.7%. EPS of $3.78 for the same period compares to $3.81 a year ago.The reported revenue represents a surprise of +2.17% over the Zacks Consensus Estimate of $39.36 billion. With the consensus EPS estimate being $3.64, the EPS surprise was +3.85%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...

Home Depot Inc (NYSE:HD) stock is the latest Dow component to announce third-quarter results. The home improvement retailer beat top- and bottom-line estimates and also hiked both its same-store annual sales and growth forecasts, citing strong demand on the heels of hurricane season. HD is up 0.2% to trade at $409.39 at last check, and sports a 18.5% lead for 2024. Eyeing their third-straight daily gain today, shares are trading at their highest level in close to a month as they bounce off the 60-day moving ...

The Home Depot (HD) Q3 2025 Earnings Call November 12, 2024 09:00 AM ET Company Participants Isabel Janci - VP of Investor Relations & TreasurerEdward Decker - Chairman, President & CEOAnn-Marie Campbell - Senior Executive Vice PresidentBilly Bastek - Executive Vice President – MerchandisingRichard Mcphail - Executive Vice President & CFOChuck Grom - Managing DirectorSteven Zaccone - Director, Equity Research, Hardlines RetailChip Devine - Senior Vice President of Outside SalesHector Padilla - Executive Vic ...

Home Depot NYSE: HD is moving higher on the combined forces of outperformance and an expectation for tailwinds to develop in 2025. Better-than-expected consumer trends, acquisitions, and the pro-business drive outperformance in 2024, leading the company to improve guidance against a backdrop of negative sentiment. Tailwinds will form in 2025 as policy headwinds ease and Trump’s business and consumer-friendly policies spur activity, specifically in the housing market.  Home Depot TodayHDHome Depot$408.88 +0 ...

About this content About William Farrington William kickstarted his career as a researcher and reporter for a global legal publication, covering everything from public law to M&A. Before moving to Proactive Investors, he worked as a reporter for a major fintech company with a focus on cryptocurrency and blockchain technology. Harking from Queensland, Australia, William obtained first-class honours in journalism and media from Birkbeck University before going on to complete an MA in creative and critical wri ...