In the third quarter of fiscal 2024, Home Depot reported sales of $40.2 billion, marking a 6.6% increase from the same period in 2023.
Despite this growth, comparable sales declined by 1.3%, with U.S. comparable sales decreasing by 1.2%. The company’s operating income remained steady at $5.4 billion, resulting in an operating margin of 13.5%, slightly down from 14.3% in the previous year.
Net earnings were $3.6 billion, or $3.67 per diluted share, compared to $3.8 billion, or $3.81 per diluted share, in the same quarter of 2023.
During the earnings call, CEO Ted Decker acknowledged the challenges posed by high interest rates and low housing turnover, which have impacted large-scale remodeling projects. Despite these obstacles, the company exceeded earnings expectations and raised its full-year guidance, now projecting a 4% increase in sales for the year, up from the previous estimate of 2.5% to 3.5%.
This optimistic outlook is supported by the addition of an extra fiscal week and plans to open 12 new stores in 2024. Home Depot’s stock has risen by 17.3% year to date, reflecting investor confidence in the company’s resilience amid market challenges.
