Home Depot Beats Q4 Earnings & Sales as Home Improvement Stays Strong

Core Insights - Home Depot Inc. reported strong fourth-quarter fiscal 2024 results, with earnings and sales exceeding expectations and showing year-over-year improvement [1][2][3] Financial Performance - Adjusted earnings per share increased by 9.4% to $3.13 from $2.82 in the same quarter last year, surpassing the Zacks Consensus Estimate of $3.04 [2] - Net sales rose 14.1% to $39.7 billion from $34.8 billion year-over-year, also exceeding the Zacks Consensus Estimate of $39.14 billion [3] - The additional week in the fiscal fourth quarter contributed $2.5 billion to sales [3] - Comparable sales improved by 0.8%, with U.S. comparable sales rising 1.3% due to increased customer transactions and average ticket size [5] Profitability Metrics - Gross profit increased by 13.3% year-over-year to $13 billion, although gross margin declined by 30 basis points to 32.8% [6][9] - SG&A expenses rose 15.7% to $7.7 billion, with SG&A as a percentage of sales increasing by 30 basis points to 19.5% [8] - Adjusted operating income grew by 10.7% to $4.6 billion, while the adjusted operating margin contracted by 40 basis points to 11.7% [9] Future Outlook - For fiscal 2025, Home Depot anticipates a sales increase of 2.8% and comparable sales growth of 1% [12] - The company estimates a gross margin of 33.4% and an operating margin of 13% for fiscal 2025, with adjusted operating margin expected at 13.4% [13] - GAAP earnings per share are projected to decline by 3%, while adjusted earnings per share are expected to fall by 2% year-over-year [14]