Home Depot Reports Q2 Fiscal 2024 Results and Revises Full-Year Guidance

Home Depot, the world’s largest home improvement retailer, announced its Q2 fiscal 2024 results, reporting sales of $43.2 billion, a 0.6% increase from Q2 fiscal 2023. This total includes $1.3 billion from the recent acquisition of SRS Distribution Inc. (SRS), reflecting approximately six weeks of sales. Comparable sales for Q2 fiscal 2024 decreased by 3.3%, with U.S. comparable sales down by 3.6%.

Operating income for the quarter was $6.5 billion, with an operating margin of 15.1%, compared to $6.6 billion and a 15.4% margin in Q2 fiscal 2023. Adjusted operating income stood at $6.6 billion with a 15.3% margin, slightly down from last year’s adjusted figures of $6.6 billion and 15.5%.

Net earnings for the quarter were $4.6 billion, or $4.60 per diluted share, compared to $4.7 billion, or $4.65 per diluted share, in the same period last year. Adjusted diluted earnings per share were $4.67, nearly flat compared to $4.68 in Q2 fiscal 2023.

Ted Decker, Chair, President, and CEO, commented, “The underlying long-term fundamentals supporting home improvement demand are strong. However, higher interest rates and broader macroeconomic uncertainty pressured consumer demand this quarter, leading to weaker spending on home improvement projects. Despite these challenges, our team continued to execute at a high level. I want to thank our associates for their dedication to serving our customers and communities.”

Fiscal 2024 Guidance Update

Home Depot updated its fiscal 2024 guidance, which includes 53 weeks of operating results, considering the performance in the first half of the fiscal year and incorporating SRS.

Key updates include:

  • Total sales are expected to increase by 2.5% to 3.5%, including the impact of the 53rd week.
  • The 53rd week is projected to add approximately $2.3 billion to total sales.
  • SRS is expected to contribute approximately $6.4 billion in incremental sales.
  • Comparable sales are anticipated to decline by 3% to 4% for the 52-week period compared to fiscal 2023.
  • Approximately 12 new stores are planned.
  • Gross margin is expected to be around 33.5%.
  • Operating margin is projected to be between 13.5% to 13.6%, with adjusted operating margin between 13.8% to 13.9%.
  • A tax rate of approximately 24% is expected.
  • Net interest expense is projected to be around $2.2 billion.
  • Diluted earnings per share for the 53-week period are expected to decline by 2% to 4%, with the 53rd week contributing about $0.30 per share.
  • Adjusted diluted earnings per share are expected to decline by 1% to 3%, with the 53rd week contributing around $0.30 per share.

Home Depot will host a conference call today at 9 a.m. ET to discuss these results and related matters, which will be available via webcast and replay at ir.homedepot.com/events-and-presentations.

As of the end of Q2, Home Depot operated 2,340 retail stores and over 760 branches across all 50 U.S. states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico. The company employs over 465,000 associates. Home Depot’s stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones Industrial Average and S&P 500 Index.

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