The Home Depot (HD) has reported fourth-quarter 2024 financial results that narrowly beat Wall Street’s expectations.
The Atlanta-based home improvement retailer announced earnings per share (EPS) of $3.02 U.S., which was only slightly ahead of consensus estimates that called for $3.01 U.S.
Revenue in the October through December quarter totaled $39.70 billion U.S., which was a little above a forecast of $39.16 billion U.S. Sales were up 14% from a year earlier.
Comparable sales, also known as same-store sales, increased 0.8% across the company during Q4 2024.
That result ended eight consecutive quarters of declining comparable sales at Home Depot and exceeded analysts’ expectations of a 1.7% decline.
Comparable sales in the U.S. increased 1.3% year-over-year during Q4 2024.
Additionally, consumers spent more money and visited Home Depot’s stores and website more often in the quarter compared with a year ago.
Transactions rose to 400 million, up nearly 8% from the final quarter of 2023. The average ticket item purchased cost $89.11 U.S., up from $88.87 U.S. a year ago.
Management said that elevated interest rates and housing prices have dampened consumer demand for large scale remodels and expensive home improvement projects.
However, the company expects that consumers will stop putting off major projects as they become accustomed to higher interest rates rather than waiting for them to fall.
Looking ahead, The Home Depot said that it expects total sales to grow by 2.8% and comparable sales to grow by about 1% this year.
Home Depot projected that its earnings per share in 2025 will decline 2% compared to its 2024 profit.
The stock of Home Depot is down 2% on news of the company’s latest financial results. Over the past 12 months, the share price has risen 3% to trade at $382.42 U.S.
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