Household On Tuesday, three -month Wall Street sales expectations, although raised interest rates and housing prices, wet the consumer’s demand for large remodeling and more valuable projects.
For the full year ahead, the company said it expects total sales to increase by 2.8% and comparable sales, which receive the influence of factors once such as shop openings and calendar changes, increase by about 1%. The prescribed gains of the Home Share Depot will fall about 2% compared to a year earlier.
In an interview with CNBC, leading financial officer Richard McPhail said “Housing It is still frozen by mortgage rates. “However, he said the Home Depot saw a wide -based growth, as sales increased in about half of its categories of goods and 15 of its 19 geographical regions.
Home Depot predicts that customers will stop sharing projects as gradually Get used to higher interest rates, rather than expect them to fall, McPhail said.
“They tell us their lives are going on,” he said. “Their families are growing up. They are moving for a new job. They are raising their home. They want to improve their standard of living. The improvement of the house always goes on, and so the question, I think, will be around the mind that if long -term norms have reached a new normal. “
Here’s what the company reported on the fourth fiscal quarter compared to Wall Street’s estimates, according to a study by analysts by LSEG:
- Profits for Action: 3.02 $ Vs 3.01 $ expected
- Income: $ 39.70 billion versus $ 39.16 billion are expected
Home shares depots sliding about 2% in pre -traded trading. The company is expected to hold a revenue call at 9am ET.
In the three-month period ended February 2, the Home Depot net income ranged to $ 3.0 billion, or $ 3.02 per share, from $ 2.80 billion, or $ 2.82 per share, a year earlier. Revenue increased 14% by $ 34.79 billion in the previous year.
Comparable sales, a metric also known as sales of the same store, increased 0.8% across the company. These results ended eight consecutive quarters of comparable sales decline. They also exceeded analysts’ expectations for a decline of 1.7%, according to Streetaccount. Comparable sale in the SH.BA increased 1.3% year by year.
Regions hit by Hellenic Hurricanes and Milton contributed about 0.6% to comparable sale, McPhail said.
Customers spent more and visited the Home Depot Websites and websites more than a year earlier. The transactions increased to 400.4 million, by nearly 8% from the period a year earlier. The average ticket was $ 89.11 in three months, just from $ 88.87 in last year’s quarter.
The Home Depot has faced a more difficult backdrop for selling supplies for home improvement projects. The sales increase slowed in 2023, after the large appetite of customers for home renovations during Covid Pandemia turned into more typical models. Inflation and a relocation again to services for services such as holidays and restaurants also demanded consumer request for larger projects and more precious items.
Since mid -2023, Home Depot leaders have depended on the problems of the company in a tougher housing market. McPhail told CNBC that the same challenge continued in the fourth trimester, as consumers still showed reluctance to spray larger projects, such as redefining a kitchen or installing the new floor.
Mortgage rates have remained high, despite lowering interest rates from the federal reserve. The average pricing of a house sold in January was $ 396,900, with 4.8% a year earlier and the highest price ever for January, according to the National Realtors Association.
The toughest weather also damaged the company’s sales in January, and this was done in February in some parts of the country, McPhail said.
“When the weather is good. We continue to see the engagement,” he said. “When the weather is difficult, projects are inserted into the shelf.”
Even so, he said the Home Depot is focused on ways that can move the needle, such as opening new stores and investing in its e -commerce business.
Internet sales increased 9% in the fourth quarter compared to the period a year ago, said McPhail, the strongest quarter of the year for the Home Depot digital business. He prompted it to the company’s investments in faster shipments, especially with receiving equipment and power tools for customers.
Said mcphail The Home Depot opened 12 new stores in 2024, and plans to open 13 new seats next year.
Home Depot has also seen home professionals as one of its main sales leaders. She bought SRS Distribution, a Texas -based company that sells supplies to professionals in roof, pool and landscape businesses for $ 18.25 billion last year. She scored the biggest purchase in the company’s history.
Some pro severe categories, such as roofs, drywall and lumber, saw a quarter sales increase due to the push of the Home warehouses to better serve contractors and other benefits of the house, McPhail said.
The Home Depot shares closed on Monday at $ 382.42. Since the moon, the company’s shares have fallen about 2% so far this year. This traces after the profits of S&P 500 approximately 2% during the same period.
This is a developing story. Please check again for updates.