by 1st-half sales drop .7%, indicating weaker consumer spending for home improvement projects
ATLANTA — Home improvement retailer Home Depot reported a slight increase in sales for its second quarter of fiscal 2024, which include results from its recent purchase of SRS Distribution, representing about six weeks of sales during the quarter ended July 30.
For the quarter, sales totaled $43.2 billion, compared with $42.9 billion in the same period last year, a .6% increase. The figure for the second quarter included $1.3 billion in sales from SRS, a supplier of roofing and building materials.
Net earnings totaled $4.6 billion, or $4.60 per share, down 2.1% from the $4.7 billion, or $4.65 per share, reported the same period last year. The company’s adjusted operating income for the quarter totaled $6.53 billion, with a margin of 15.3% compared with $6.6 billion and an operating margin of 15.5% the same period last year.
For the full first half, the HNN 125 Retailer reported net sales of $79.6 billion, down .7% from $80.2 billion the same period the year prior.
It reported net earnings of $8.2 billion, or $8.23 per share, down 4.3% from $8.5 billion, or $8.46 per share, during the first half of last year. Its adjusted operating income during the period totaled $11.6 billion, for a margin of 14.6% compared with $12.1 billion, or a margin of 15.14% last year.
“The underlying long-term fundamentals supporting home improvement demand are strong,” said Ted Decker, chair, president and chief executive officer. “During the quarter, higher interest rates and greater macro-economic uncertainty pressured consumer demand more broadly, resulting in weaker spend across home improvement projects. However, the team continued to navigate this unique environment while executing at a high level. I would like to thank our associates for their hard work and dedication to serving our customers and communities.”
The company also provided an update to its fiscal 2024 guidance, which it said includes 53 weeks of operating results and to reflect the inclusion of sales from SRS.
For example:
+ The company anticipates total sales will increase between 2.5% and 3.5% including the 53rd week, which is projected to add about $2.3 billion in total sales.
+ SRS is expected to contribute about $6.4 billion in incremental sales.
+ Meanwhile, comparable store sales are expected to decline between 3% and 4% for the 52-week period compared with fiscal 2023. The company said that a 4% decline implies incremental pressure on consumer demand.
+ It also anticipates opening 12 new stores during the year.
+ It also expects a gross margin of about 33.5% and an operating margin between 13.5% and 13.6%.
+ It anticipates its adjusted operating margin to be between 13.8% and 13.9%.
+ It also expects its 53-week diluted earnings-per-share to decline between 2% and 4%.
Home Depot ranked at No. 25 on Home News Now’s 125 Furniture & Bedding Retailers with estimated furniture and bedding sales of $770 million in 2023. The retailer offers a wide variety of furniture and accessories on its website, www.homedepot.com, where customers can browse and make purchases, having items shipped to them directly or picking them up at their local store.
