Home Depot
Home Depot’s Q4 2024 financial report reveals promising growth, signaling a potential loosening of previously tight home improvement spending. Sales for the quarter reached $39.7 billion, a 14.1% increase compared to Q4 2023, with comparable sales up by 0.8%, ending eight consecutive quarters of decline. In the U.S., comparable sales rose by 1.3%. Net earnings for the quarter stood at $3 billion, up from $2.8 billion in the previous year.
The company’s fiscal 2024 results also demonstrated positive momentum, with sales totaling $159.5 billion, a 4.5% increase from fiscal 2023. However, overall comparable sales for fiscal 2024 decreased by 1.8%, with the U.S. experiencing the same decline. Net earnings for the year were $14.8 billion, slightly lower than the $15.1 billion reported in fiscal 2023.
Looking ahead, Home Depot anticipates total sales growth of approximately 2.8% for fiscal 2025, with comparable sales growth of around 1%. The company also plans to open approximately 13 new stores.
Lowe’s
Lowe’s Q4 2024 earnings report reveals a positive trajectory for the home improvement retailer, mirroring the success of Home Depot’s recent report. Net earnings for the quarter ending January 31, 2025, increased by 10.3% to $1.125 billion, compared to $1.020 billion in the same quarter last year. While total sales for the quarter experienced a slight dip to $18.553 billion from $18.602 billion year-over-year, comparable sales saw a rise of 0.2%, marking the first increase in eight quarters.
The growth in comparable sales was attributed to strong performance in Pro and online sales, a successful holiday season, and increased demand due to hurricane rebuilding efforts. However, this growth was partially offset by ongoing challenges in DIY discretionary spending. CEO Marvin Ellison acknowledged the difficulties posed by high mortgage rates and housing costs but expressed confidence in the company’s strategic initiatives and the expected recovery of the home improvement market.
Looking ahead to 2025, Lowe’s projects total sales to range from $83.5 to $84.5 billion, with comparable sales expected to remain flat or increase by up to 1%. The company anticipates an operating margin of 12.3% to 12.4%, net interest expenses of approximately $1.3 billion, and diluted earnings per share between $12.15 and $12.40. Capital expenditures are projected to be around $2.5 billion. In addition, Lowe’s will be awarding $80 million in discretionary bonuses to its frontline employees.
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