Key TakeawaysHome Depot posted mixed first-quarter results Tuesday, with sales just missing estimates and profits narrowly beating them.The retailer also affirmed its full-year guidance, expecting total sales and earnings to increase slightly compared to fiscal 2023 while it opens a dozen new stores.The guidance does not include the $18 billion acquisition of SRS Distribution that Home Depot announced in March, which is expected to close by the end of fiscal 2024. Home Depot's (HD) first-quarter results rel ...

Financial Data and Key Metrics Changes - Total sales for Q1 2024 were $36.4 billion, a decrease of 2.3% year-over-year. Comp sales declined by 2.8%, with U.S. stores experiencing negative comps of 3.2% [7][25] - Diluted earnings per share were $3.63, down from $3.82 in the same quarter last year, representing a 5% decrease [7][27] - Gross margin improved to 34.1%, an increase of approximately 45 basis points from the previous year, primarily due to lower transportation costs and shrink [25][26] - Operating margin decreased to 13.9% from 14.9% year-over-year [26][27] - Merchandise inventories were $22.4 billion, down approximately $3 billion or 12% compared to the previous year, with inventory turns increasing to 4.5x from 3.9x [27] Business Line Data and Key Metrics Changes - Comp transactions decreased by 1.5%, while the average ticket size decreased by 1.3%. Big ticket transactions (over $1,000) were down 6.5% compared to the previous year [19][20] - Online sales increased by 3.3% year-over-year, with nearly half of online orders fulfilled through stores [20][21] - Building materials and power departments posted positive comps, while outdoor garden, paint, lumber, plumbing, and hardware categories were above the company average [18] Market Data and Key Metrics Changes - U.S. comp sales were negative 3.2% for the quarter, with February at -4%, March at -0.8%, and April at -3.3% [25] - Mexico posted positive comps, while Canada was slightly below the company average [25] Company Strategy and Development Direction - The company is focused on enhancing its Pro ecosystem to capture a larger share of the $250 billion total addressable market (TAM) for residential Pro contractors [8][10] - The acquisition of SRS Distribution aims to strengthen capabilities in specialty trade verticals, enhancing service to complex project customers [10][62] - The company plans to expand its Pro ecosystem to 17 markets by the end of the fiscal year, with expectations to grow further in the future [9][64] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of delayed spring weather and continued softness in larger discretionary projects but expressed optimism about store readiness and customer engagement as spring progresses [7][11] - The company reaffirmed its guidance for fiscal 2024, expecting total sales growth of approximately 1% and comp sales of approximately -1% [30][31] - Management emphasized the importance of execution in the core business and the positive trends in customer engagement despite current market pressures [66][70] Other Important Information - The company invested approximately $850 million in capital expenditures during the quarter and paid $2.2 billion in dividends [27][28] - The effective tax rate for the quarter was 22.6%, down from 24.2% in the previous year [26][27] Q&A Session Summary Question: Can you talk about the impact of weather on sales? - Management noted that inconsistent weather affected sales, with some markets performing well while others did not. Positive engagement was seen where weather was favorable [34][35] Question: How is the big ticket project business performing? - The big ticket project business continues to face pressure, particularly in financed projects like kitchen and bath remodels, while some categories like outdoor power equipment are seeing strong engagement [39][40] Question: What is the outlook for the second half of the year? - Management indicated that the primary factor for improvement in same-store sales in the second half would be the anticipated stabilization of average unit retail (AUR) pressures [82] Question: How is the promotional environment changing? - The promotional environment remains rational, with events designed to drive excitement rather than deep discounts. The market has normalized to pre-COVID levels [84]

Is your refrigerator running?Rather than going to catch it, as the old prank phone call goes, Home Depot told investors during its first-quarter 2024 earnings call Tuesday (May 14) that many of today’s consumers are sitting out on major home projects as a result of high interest rates and macro pressures.“Goods are underperforming services,” Home Depot Chair, President and CEO Ted Decker told investors.That’s why the world’s largest home improvement retailer is determined to focus more on building its busin ...

Home Depot (HD) reported $36.42 billion in revenue for the quarter ended April 2024, representing a year-over-year decline of 2.3%. EPS of $3.63 for the same period compares to $3.82 a year ago.The reported revenue represents a surprise of -0.64% over the Zacks Consensus Estimate of $36.65 billion. With the consensus EPS estimate being $3.61, the EPS surprise was +0.55%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street exp ...

Key PointsHome Depot provided a better-than-feared Q1 report but gave no reason for the market to rally. Growth will be hard to achieve this year, but cash flow and capital return will remain solid. Analysts capped the upside ahead of the release and may lower their price targets now. 5 stocks we like better than Home DepotHome Depot NYSE: HD issued a mixed Q1 report offering little reason to buy or sell the stock. On the one hand, weaker-than-expected revenue and tepid guidance suggest growth will be hard ...

Home Depot (HD) came out with quarterly earnings of $3.63 per share, beating the Zacks Consensus Estimate of $3.61 per share. This compares to earnings of $3.82 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.55%. A quarter ago, it was expected that this home-improvement retailer would post earnings of $2.77 per share when it actually produced earnings of $2.82, delivering a surprise of 1.81%.Over the last four quarters, the ...

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Exhibit 99.1 The Home Depot Announces First Quarter Fiscal 2024 Results; Reaffirms Fiscal 2024 Guidance ATLANTA, May 14, 2024 -- The Home Depot®, the world's largest home improvement retailer, today reported sales of $36.4 billion for the first quarter of fiscal 2024, a decrease of 2.3% from the first quarter of fiscal 2023. Comparable sales for the first quarter of fiscal 2024 decreased 2.8%, and comparable sales in the U.S. decreased 3.2%. Net earnings for the first quarter of fiscal 2024 were $3.6 billio ...

ATLANTA, May 14, 2024 /PRNewswire/ -- The Home Depot®, the world's largest home improvement retailer, today reported sales of $36.4 billion for the first quarter of fiscal 2024, a decrease of 2.3% from the first quarter of fiscal 2023. Comparable sales for the first quarter of fiscal 2024 decreased 2.8%, and comparable sales in the U.S. decreased 3.2%.  Net earnings for the first quarter of fiscal 2024 were $3.6 billion, or $3.63 per diluted share, compared with net earnings of $3.9 billion, or $3.82 per di ...

The logo of U.S. home improvement chain Home Depot is seen in Mexico City, Mexico, on Jan. 15, 2020.Home Depot will report its latest earnings results Tuesday as the retailer pushes to draw more sales from home professionals such as roofers and landscapers.Here's what Wall Street is expecting for the fiscal first quarter, based on a survey of analysts by LSEG:Earnings per share: $3.60 expectedRevenue: $36.66 billion expectedHome Depot is contending with a tougher housing backdrop, which has dampened demand ...