The Home Depot (HD) Q4 2024 earnings summary

Executive summary

• FY2023 sales fell 3.0% to $152.7B and net earnings fell to $15.1B; management characterized the year as a moderation after three years of exceptional growth.

• Strategic priorities included improving the interconnected customer experience, expanding Pro wallet share, and building new stores.

Financial highlights

• Q4 sales were $34.8B, down 2.9% YoY; comparable sales fell 3.5%, including a 4.0% decline in the U.S.

• Q4 net earnings were $2.8B and diluted EPS was $2.82, down 14.5% YoY; operating income was $4.143B versus $4.752B.

• FY2023 net earnings were $15.143B and diluted EPS was $15.11, down 11.5% and 9.5%, respectively; operating income was $21.689B versus $24.039B.

• FY2023 operating cash flow was $21.172B, compared with $14.615B in FY2022.

Outlook and guidance

• FY2024 includes 53 weeks; total sales growth is projected at ~1.0%, with the extra week contributing ~$2.3B in sales; 52-week comparable sales are expected to decline ~1.0%.

• Guidance includes gross margin of ~33.9%, operating margin of ~14.1%, tax rate of ~24.5%, and net interest expense of ~$1.8B.

• FY2024 diluted EPS growth is projected at ~1.0%; the 53rd week is expected to contribute ~$0.30 per diluted share; ~12 new stores are planned.