Quarterly Earnings 2022 The Home Depot

“Something like Halloween, I mean, it’s not an enormous business for us,” Decker said during the company’s quarterly investor call. The $300 skeleton quickly sold out and, in the years since, Home Depot has added more and more large-scale items to its Halloween offerings. This year, the retailer is planning to have a larger footprint of merchandise in stores than usual as it showcases new stock such as a 13-foot Jack Skellington created in partnership with Disney. The character from “The Nightmare Before Christmas” is retailing for $399 and consumers are limited to one per order. The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.

Thank you, Isabel and good morning everyone. Over the past 3 years, we grew our business $47 billion or 43%. After this period of unprecedented growth, we expect the demand would moderate in fiscal 2023, which our first quarter results reflect. Sales for the first quarter were $37.3 billion, down 4.2% from the same period last year.

We continue to invest in ecosystem of capabilities, including enhanced fulfillment, more personalized online experience, as well as other business management tools to drive deeper engagement with our Pro customers. Michael, great question, I wouldn’t say we have gone into that level of detail by category. Certainly, a number of those categories were elevated.

So whether – rather than do an entire room or an entire basement, you start working the way at it in smaller chunks. And that clearly impacts items per basket in overall activity. Thank you, Isabel, and good morning, everyone.

Earnings for Home Depot are expected to grow by 6.63% in the coming year, from $15.24 to $16.25 per share. Home Depot has not formally confirmed its next earnings publication date, but the company’s estimated earnings date is Tuesday, November 21st, 2023 based off prior year’s report dates. “After a three-year period of unprecedented growth for our sector, during which we grew sales by over $47 billion, we expected that fiscal 2023 would be a year of moderation for the home improvement market.

Questions & Answers:

On a three-year basis, it’s more or less stable. But I will say, one thing we have noticed because our strength has continued into Q3 here in the first couple of weeks. We think — again, I mentioned PCE and people traveling and service spending going up.

Comp sales were up 8.1% from last year with U.S. I am confident that this leadership team will effectively guide The Home Depot through its next phase of growth. But before we talk about that, let’s first discuss our results for the year. Fiscal 2021 was another record year for The Home Depot as we achieved the milestone of over $150 billion in sales.

Home Depot: Remodeling Activity Expected To Worsen In 2024

How are you thinking about the DIY business into the fall versus maybe people come back and there’s some things that need to get done and the kids are going back to school. I don’t know if it’s income cohort, but if there’s anything else because https://1investing.in/ you mostly answered it in the response to the last question, but curious if there’s more. Thank you, Christine, and thank you all for joining us today. We look forward to speaking with you on our first-quarter earnings call in May.

And for our larger Pros, we have to serve them with a single point of contact, hence where we’re expanding our onsite sales team and building an inside sales team. And I will tell you specifically to Dallas, Dallas is the most advanced market and is performing extremely well. We’re thrilled to see our Pros trying our capabilities or growing their spend quarter-over-quarter. And I will share with you that other top markets for us are markets where we have the new supply chain assets, and other part of ecosystem live. On Tuesday Home Depot reaffirmed its full-year guidance ahead of the key holiday quarter, noting it expects diluted earnings per share percentage growth in the mid-single digits. The company also expects comparable store sales to grow about 3% and an operating margin of approximately 15%.

The Home Depot Announces First Quarter Fiscal 2023 Results; Updates Fiscal 2023 Guidance

We’ve got a lot of products helping our Pros finish the job faster and simplifying the project for our consumer. So, no significant trade down taking place. But as Ted commented, there’s COVID pull forward, there’s stimulus effect. We went from a very wet and cold spring to a very hot summer in the majority of our markets.

I’d like to spend some time talking about the future, what’s next for this great company. Over the years, we have used these inflection points to adapt to changing market conditions and customer expectations. Were positive 7.6% for the quarter with positive comps of 7.2% in November, 10.9% in December, and 5.4% in January. Our results in the fourth quarter were once again driven by broad-based strength across the business and our geographies. All 19 U.S. regions posted positive comps, and Canada and Mexico, both posted double-digit positive comps in the fourth quarter. Sales leveraging our digital platforms grew approximately 6% for the fourth quarter and approximately 9% for the year.

The investments we’ve made in our business have enabled agility in our operating model. As we look forward, we will continue to invest to strengthen our position with our customers, leverage our scale and low-cost position to drive growth faster than the market, and deliver shareholder value. At the end of the quarter, merchandise inventories were $22.1 billion, an increase of $5.4 billion versus last year. And inventory turns were 5.2 times, down from 5.8 times from the same period last year. During the fourth quarter, we invested approximately $830 million back into our business in the form of capital expenditures.

FY2024 Guidance

And you’ve heard us say this before, Karen, but our largest operating expense is hourly payroll and having activity-based model. If sales drop off, transactions, units, etc., our labor model adjusts to that, and you reduce your labor expense. And then just a follow-up, maybe thinking longer term, so for Ted or Richard. As we think about the level of investment spending you’re sort of indicating — because it sounds like investment spending is going to be more constant. But any updated thoughts on how you sort of think about what the right level of spend is?

• Hence, why we’re expanding our onsite sales team and building an onsite sales team.
• Our final question comes from the line of David Bellinger with MKM Partners.
• The broader housing environment continues to be supportive of home improvement.
• We remain agile and respond to evolving customer dynamics while always being an advocate for value.

And maybe I’m not using apples-to-apples on the TAM, but maybe just clarify that. A couple of questions just on, well, on the TAM and market share. So when you look at your share in 2019, I’m kind of at around 16% on the $650 billion TAM.

Infographic: The Home Depot Announces Second Quarter 2023 Results

And as Ted said, you’re spending more time at home and that home is getting older. And you do not have an incentive to sell and take on a higher rate mortgage. So I think we’ve already seen that in housing turnover. As a result, we are seeing improvements in key customer service metrics as well as benefits to our operations in the form of consistent staffing and less safety incidents across all our regions. These improvements are exactly what we set out to achieve with this wage investment. The consistency and talent of our workforce is an important foundation for driving both customer service and productivity.

ATLANTA, Feb. 21, 2023 /PRNewswire/ — The Home Depot®, the world’s largest home improvement retailer, today reported fourth quarter and fiscal 2022 results. Oct. 31 wasn’t a big business for Atlanta-based Home Depot a decade ago, when the chain first began selling Halloween décor. HD trades in z-value definition the middle of its peer group and at a nice premium to its closest rival Lowe’s (LOW). The company has generally traded at a premium due to its better historical performance and stronger ties to the Pro market. Notably the company did reduce its guidance in May when it reported its Q1 earnings.

We are continuing that legacy but doing so in an interconnected way. Years ago, this large-scale repair/remodeler primarily shop with us in our stores for their unplanned immediate need purchases, largely out of convenience. Over time, their in-store spend increased and they were signed a dedicated Pro Account Representative, or PAR, to deepen our relationship with them. As we invested across the interconnected experience, this customer engaged with us more often and occasionally used us for job site delivery. At this point, we saw their spend with The Home Depot grow to more than $100,000 annually but still for mostly unplanned immediate need purchases in store.

We’ve also demonstrated over time that we’ve been able to take share, and we believe we’ll continue to take share in that market. And then perhaps most importantly, as we’ve chatted about in our prepared remarks, we’re working on developing the best interconnected experience in retail. So if you take the artifact of Geena, as we build this seamless, interconnected shopping experience, we think we’ll gain even more share with our consumer and Pro customers.

HD Estimated and Actual Revenue by Quarter

The dividend is payable on March 23, 2023, to shareholders of record on the close of business on March 9, 2023. This is the 144th consecutive quarter the Company has paid a cash dividend. The Company today announced that its board of directors approved a 10 percent increase in its quarterly dividend to $2.09 per share, which equates to an annual dividend of $8.36 per share. Adrianne Pasquarelli is a senior reporter at Ad Age, covering marketing in retail and finance, as well as in travel and health care.

And as people have come back, particularly in the South, we start school very early down here early August. Our Pros spend on behalf of homeowners and our DIY customers, over 90% of that sales is to a homeowner. And as Ted said, when you look at the wealth creation over the last two years home price appreciation of almost 40%, our customer is just in a really good place right now. And I think that also carries over to income, if you were to take a look at real purchasing power of our customer, it compares favorably. And my follow-up, I think, Ted and Richard, you basically answered it.

We talk about the average age of the home is now over 40-years-old, and we have big chunks of homes that are reaching that 20-year and 40-year sort of witching hour of age. We all know we are spending more time at home, so wear and tear is higher. So, we have talked about all these dynamics in the past and I would say if you had to call it, you would say, the spend would ultimately settle out potentially higher.

So on your elasticity question, for sure, every product — and it’s different by product categories, but every category has its elasticity curve, which the merchants watch very carefully. As lumber prices have recovered through this quarter, we are starting to see some unit pressure on lumber. We continue to see tremendous innovation with the products and the customers’ willingness to trade up to that more innovative product. And if you may recall, last quarter, it was more 50-50.