Home Depot releases Q4 financial report, revenue and net profit both fell but better than expected

It is learned that on February 22, the US home furnishing e-commerce company Home Depot released its fourth-quarter 2023 financial report. Due to the weakening demand for commodities caused by inflation, Home Depot's profits and sales declined this quarter, but exceeded Wall Street expectations.

The financial report shows that in the fourth quarter ending January 28, Home Depot's net sales were US$34.79 billion, down 2.9% year-on-year, higher than analysts' expectations of US$34.64 billion; net profit was US$2.8 billion (or US$2.82 per share), down from US$3.36 billion (or US$3.30 per share) in the same period last year.

In the fourth quarter of 2023, Home Depot's overall same-store sales fell 3.5% year-on-year, with same-store sales in the United States falling 4.0% year-on-year. Billy Blastek, the company's executive vice president of merchandising, said in an earnings call that commodity transactions fell 6.9% year-on-year.

For the full year, Home Depot's net sales fell 3% year over year to $152.7 billion. For 2023, the home furnishing giant's comparable sales fell 3.2%, with U.S. comparable sales falling 3.5%.

In its earnings call, Home Depot noted that customers continued to postpone spending on larger projects, especially large projects that might require loans, due to rising borrowing costs, but sales were fairly stable in the fourth quarter, except for a decline in January due to cold and wet weather. The temporary decline in the U.S. dollar will not affect the company's outlook for the coming year.

It is learned that during the epidemic, Home Depot benefited from Americans spending more time and money on painting and repairing their homes. In the past year, the home furnishing retailer has faced severe sales conditions. Home Depot CEO Ted Decker said that after three years of extraordinary growth, sales in 2023 were a "modest year."

Looking ahead, Home Depot expects net sales to increase by approximately 1.0% year-over-year and EPS to increase by approximately 1.0% in 2024. In addition, the home furnishing giant also expects comparable sales to decline by approximately 1.0% in 2024.

Editor ✎ Nicole/

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