by Comparable-store sales in the US decline 1.2% compared with the same period last year
ATLANTA — Home improvement retailer Home Depot reported a 6.6% increase in sales and a 5.2% drop in net income for its third quarter ended Oct. 27.
The company said that sales totaled $40.2 billion, up from $34.7 billion the same period last year.
Comparable-store sales decreased 1.3%, and comparable-store sales in the U.S. declined 1.2%.
Net income was down 5.2%, totaling $3.6 billion, or $3.68 per share, compared with $3.8 billion, or $3.83 per share, last year.
The company reported Q3 operating income of $5.4 billion and an operating margin of 13.5%, compared with operating income of $5.4 billion and an operating margin of 14.3% for the same period last year. Adjusted operating income was $5.6 billion and adjusted operating margin was 13.8%, compared with adjusted operating income of $5.5 billion and an adjusted operating margin of 14.5% last year.
“While macroeconomic uncertainty remains, our third-quarter performance exceeded our expectations,” said Ted Decker, chair, president and chief executive officer. “As weather normalized, we saw better engagement across seasonal goods and certain outdoor projects as well as incremental sales related to hurricane demand. I would like to thank all of our associates for their dedication in serving our customers and communities.”
Home Depot ranks at No. 25 on Home News Now’s 125 listing of furniture and bedding retailers, with estimated 2023 furniture and bedding sales of $770 million. Much of this is sold online but can be picked up at the store or delivered to the customer’s home.
Categories include bedroom, kitchen and dining furniture, living room furniture, home office furniture, bedding, home accents, rugs, lighting, mirrors and more.
Along with its financial results for the quarter, the retailer updated its full-year fiscal 2024 guidance, which includes 53 weeks of operating results.
+ With the additional week, the company projects it will add $2.3 billion in total sales, up 4% for the year.
+ Comparable store sales are expected to decline about 2.5% for the 52-week period compared with fiscal 2023.
+ It expects to add 12 new stores for the year.
+ It anticipates a gross margin of about 33.5% and an operating margin of 13.5%.
+ It anticipates an adjusted operating margin of about 13.8%.
+ It projects net interest expenses of about $2.1 billion and its 53-week earnings per share to decline about 2% from $15.11 per share in fiscal 2023.
+ Its 53rd week is expected to contribute about 30 cents of earnings per share compared to fiscal 2023.
