by Q4 sales declined 3.8% which the company attributes to one less week in the quarter compared with the same period a year earlier
ATLANTA — Home improvement retailer Home Depot reported a decrease in sales for its fourth quarter ended Feb. 1 and an increase in sales for its full fiscal year 2025.
Sales for the quarter totaled $38.2 billion, down 3.8%, or $1.5 billion from $39.7 billion the same period in 2025. The company noted that there were 14 weeks in the prior year fourth quarter, compared with 13 weeks this past fourth quarter. The additional week last year added about $2.5 billion in sales.
Comparable store sales for the fourth quarter rose .4% overall and rose .3% in the U.S.
It also reported net earnings of $2.6 billion, or $2.58 per share compared with net earnings of $3 billion, or $3.02 per share the same period last year. It also noted that the 14th week in Q4 of fiscal 2024 added 30 cents per share for the quarter and the year.
Gross profit totaled $12.5 billion, or 32.6% of sales, compared with just over $13 billion, or 32.8% of sales a year earlier. SG&A expenses totaled $7.8 billion, or 20.3% of sales, compared with $7.7 billion, or 19.5% of sales a year earlier.
Sales for the full fiscal year 2025 totaled $164.7 billion, up 3.2% or by $5.2 billion from $159.5 billion in 2024. The company noted that comparable store sales for fiscal 2025 rose .3%, and comparable sales in the U.S. rose .5%.
The retailer also reported full-year net earnings of $14.2 billion, or $14.23 per share, compared with net earnings of $14.8 billion, or $14.91 per diluted share in fiscal 2024.
Gross profit for the full year totaled $54.9 billion, or 33.3% of sales, compared with $53.3 billion, or 33.4% of sales a year earlier. SG&A expenses totaled $30.7 billion, or 18.6% of sales, compared with $28.75 billion, or 18% of sales a year earlier.
“Throughout fiscal 2025, our teams did an incredible job engaging with our customers and growing market share, and I would like to thank them for their hard work and dedication,” said Ted Decker, chair, president and chief executive officer. “For the fourth quarter, our results were largely in-line with our expectations, reflecting the lack of storm activity in the third quarter and ongoing consumer uncertainty and pressure in housing. Adjusting for storms, underlying demand was relatively stable throughout the year.”
The company also offered the following guidance for fiscal 2026:
+ It anticipates total sales growth ranging from 2.5% to 4.5%
+ It anticipates comparable sales growth ranging from flat to 2%
+ It plans to open about 15 new stores
+ Gross margin is projected at 33.1%
+ Operating margin is projected from 12.4% to 12.6%
+ Adjusted operating margin is projected from 12.8% to 13%
+ It anticipates an effective tax rate of approximately 24.3% and net interest expense of about $2.3 billion
+ It projects diluted earnings-per-share to grow approximately flat to 4% from $14.23 in fiscal 2025
+ Adjusted diluted earnings-per-share are expected to grow from flat to 4% from $14.69 in fiscal 2025
+ It also projects capital expenditures of approximately 2.5% of total sales
The retailer sells furniture as part of its e-commerce business, showcasing a wide mix of wood furniture, upholstery, bedding. This can be ordered online and either picked up in the store or delivered to the customers home.
In 2024 it ranked at No. 23 on Home News Now’s 125 Furniture & Bedding Retailers with estimated furniture and bedding sales of $775 million.
