Home Depot misses on Q1 2024 revenue

Large home-improvement retailer The Home Depot reported sales of $36.4 billion for the first quarter of fiscal 2024, a decrease of 2.3% from the first quarter of fiscal 2023. Comparable sales for the first quarter of fiscal 2024 decreased 2.8%, and comparable sales in the U.S. decreased 3.2%. The company reported net earnings for the first quarter of fiscal 2024 at $3.6 billion compared with net earnings of $3.9 billion in the same period of fiscal 2023.

“The team executed at a high level in the quarter, and we continued to grow market share,” said Ted Decker, chair, president and CEO. “And while the quarter was impacted by a delayed start to spring and continued softness in certain larger discretionary projects, we feel great about our store readiness, our product assortment in stores and online, and our associate engagement.”

Home Depot

On the company’s scheduled earnings call on Tuesday, May 14, Decker said, “Driving sales growth for residential pro customers remains one of our top focus areas.” Continuing to talk about the company’s growing focus on “pro” customers, Decker said that HD estimates the pro buyer category to be valued at approximately $250 billion, and Home Depot has little share of that market today.

Home Depot is building what it calls its “pro ecosystem.” And the company hopes to have this pro ecosystem established in 17 specific markets by the end of the fiscal year. Decker said that the company’s earlier acquisition of SRS Distributing is a big part of its ability serve these pro buyers. The company plans to expand its trade credit service to pro customers.

Billy Bastek, executive V.P. of merchandising, mentioned in-store changes that include renaming the “tools” department to the “power” department, and it now includes outdoor power equipment. The “power” moniker, according to Bastek, focuses on battery-powered equipment.

Fiscal 2024 Guidance

In its Q1 reporting, the company said it reaffirms its fiscal 2024 guidance, which includes 53 weeks of operating results. In addition, in March, the Company entered into a definitive agreement to acquire SRS Distribution Inc. (SRS). Since the acquisition has not closed, the following guidance does not reflect any impacts from the SRS acquisition:

  • Total sales growth of approximately 1.0%, including the 53rd week
  • 53rd week projected to add approximately $2.3 billion to total sales
  • Comparable sales to decline approximately 1.0% for the 52-week period
  • Approximately 12 new stores
  • Gross margin of approximately 33.9%
  • Operating margin of approximately 14.1%
  • Tax rate of approximately 24.5%

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