Shares of this retail giant are currently well off their recent high.Since its initial public offering in 1981, Home Depot (HD 0.43%) has done a fantastic job of growing shareholders' capital. It has helped that the business has paid a dividend for a jaw-dropping 148 straight quarters, a mark of consistent success over many decades.Investors who want to add a dominant blue chip enterprise to their portfolios might be considering Home Depot. But before you buy the retail stock, here are three must-know facts ...

The home improvement company's sales continue to decline, but a recovery could be coming.Analysts at financial companies including HSBC, UBS, and TD Cowen have been lowering their price targets for Home Depot (HD -1.70%) following the company's recent quarterly report, and Evercore ISI is no exception. Its analyst lowered the price target on the stock to $390 from $420. Still, the exciting part is that he maintained an outperform rating on the stock, and the new target represents a 13% premium to the price ...

Oleg Kovtun/iStock Editorial via Getty Images Investment Thesis I last covered The Home Depot, Inc. (NYSE:HD) in May 2023 and the stock has given a good 23% return since then. Moving forward, the company is well-positioned to deliver revenue and margin growth. The company’s revenue should benefit from easing Average Unit Retail ('AUR') comparisons, normalizing demand patterns for SKUs like gardening and outdoor power equipment which saw pull forward demand during Covid, and strength in the company’s Pro ...

ATLANTA, May 16, 2024 /PRNewswire/ -- The Home Depot®, the world's largest home improvement retailer, today announced that its board of directors declared a first quarter cash dividend of $2.25 per share. The dividend is payable on June 13, 2024, to shareholders of record on the close of business on May 30, 2024. This is the 149th consecutive quarter the company has paid a cash dividend.The Home Depot is the world's largest home improvement specialty retailer. At the end of the first quarter of fiscal year ...

The retail sector is a critical component of the global economy, encompassing a wide array of businesses that sell goods and services directly to consumers. From large multinational chains to small independent shops, this sector includes both online and brick-and-mortar stores, offering products ranging from apparel and electronics to groceries and household items. The sector is highly responsive to economic cycles, with consumer spending being a key driver.Investing in retail stocks offers potential advant ...

GERMANY - 2024/02/17: In this photo illustration, The Procter & Gamble Company, P&G, logo seen ... [+] displayed on a tablet. (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesWe believe that Home Depot stock (NYSE: HD) is currently a better pick over Procter & Gamble stock (NYSE: PG), given its better prospects. Although Home Depot is a consumer cyclical and P&G is a consumer defensive company, we compare them due to their similar operati ...

A prominent business leader and one of the Republican Party’s top donors didn’t mince words when reacting to President Biden’s now repeated, incorrect inflation claim. "Why do liars lie? Because they lie. That's why you call them a liar," former Home Depot co-founder and CEO Ken Langone said on "The Ingraham Angle" Tuesday."That's the most absurd remark in the world to say that inflation was 9% when he came in," he continued. "It was... 1.4%." In a recent interview with Yahoo! Finance, Biden touted his admi ...

Core Insights - Home Depot Inc. reported first-quarter fiscal 2024 results with earnings exceeding estimates but sales falling short, reflecting a year-over-year decline in both metrics [1][3] - The company's performance was affected by a delayed spring season and reduced demand for larger discretionary projects, although it maintained confidence in its business initiatives and market share expansion [1][2] Financial Performance - Earnings per share were $3.63, down 5% from $3.82 in the previous year, but above the Zacks Consensus Estimate of $3.61 [3] - Net sales decreased by 2.3% to $36,418 million from $37,257 million year-over-year, missing the Zacks Consensus Estimate of $36,654 million [3] - Comparable sales fell by 2.8%, with a 3.2% decline in the U.S. due to reduced customer transactions and average ticket sizes [3][4] - Gross profit decreased by 1% year-over-year to $12,433 million, while gross margin improved by 40 basis points to 34.1% [4] - Operating income fell by 8.5% to $5,079 million, with operating margin contracting by 100 basis points to 13.9% due to higher SG&A expenses [4] Operational Metrics - SG&A expenses rose by 4.9% to $6,667 million, increasing as a percentage of sales by 120 basis points to 18.3% [4] - Customer transactions declined by 1% year-over-year, and average ticket size decreased by 1.3% [3][4] Cash and Debt Position - At the end of the first quarter, Home Depot had cash and cash equivalents of $4,264 million and long-term debt of $42,060 million [5] - The company generated $5,497 million in net cash from operations during the first three months of fiscal 2024 [5] Fiscal 2024 Outlook - Management retained its fiscal 2024 forecast, expecting a 1% increase in sales year-over-year, including $2.3 billion from an additional 53rd week [6] - Comparable sales are anticipated to decline by 1% for the 52-week period, with plans to open 12 new stores [6] - Gross margin is expected to be 33.9%, and operating margin is projected at 14.1% for fiscal 2024 [6] - The effective tax rate is estimated at 24.5%, with interest expenses likely to be $1.8 billion [6] - Earnings per share are expected to increase by 1% year-over-year, with the 53rd week contributing 30 cents per share [6]

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]