Home Depot reports weaker Q4 profit, lifts dividend

Core Insights - Home Depot reported a decline in net sales and earnings for Q4 FY25, with net sales at $38.2 billion, a 3.8% decrease year-over-year, and net earnings of $2.57 billion compared to $3 billion in the prior year [1][2] Financial Performance - Comparable sales increased by 0.4% overall and 0.3% in the US, with the reporting period consisting of 13 weeks compared to 14 weeks in FY24 [2] - Cost of sales decreased by 3.5% year-on-year to $25.73 billion, leading to a gross profit of $12.46 billion, down 4.4% [2] - SG&A expenses rose by 0.6% to $7.77 billion, while operating income fell by 14.4% to $3.84 billion and earnings before income taxes declined by 15.2% to $3.29 billion [2] - Diluted earnings per share were $2.58, down from $3.02 a year earlier, with adjusted diluted earnings per share at $2.72 compared to $3.13 in the previous year [3] Annual Results - For the full fiscal year, net sales increased by 3.2% to $164.68 billion from $159.51 billion, with cost of sales reaching $109.81 billion, up 3.4% [3][4] - Gross profit grew by 2.9% to $54.86 billion, while SG&A expenses rose by 6.8% to $30.70 billion [3] - Operating income for the year decreased by 3% to $20.89 billion, and net earnings declined by 4.4% to $14.15 billion from $14.80 billion [4] Dividend and Future Guidance - The board approved a 1.3% increase in the quarterly dividend to $2.33 per share, translating to an annual dividend of $9.32 per share [4] - For FY26, Home Depot anticipates total sales growth of approximately 2.5% to 4.5%, with comparable sales projected to range from flat to 2% [5] - The company plans to open around 15 new stores and expects a gross margin of 33.1%, with operating margin forecasted at approximately 12.4% to 12.6% [6]