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Home Depot Releases Q4 & Fiscal 2020 Results – Increases Quarterly Dividend Payable March 25

By John F. Heerdink, Jr.

Home improvement giant, Home Depot, Inc. (HD) announced Q4 and fiscal 2020 results this week. Here’s how the company performed.

Fourth-Quarter Earnings Highlights:

  • Fourth-Quarter sales stood at $32.3 billion, an increase of $6.5 billion, or 25.1 percent from the fourth quarter of the previous year.
  • Comparable sales for the fourth quarter of fiscal 2020 increased 24.5 percent, and comparable sales in the U.S. also witnessed a rise by 25 percent.
  • Net earnings of $2.9 billion were reported for the quarter of fiscal 2020 or $2.65 per diluted share, in comparison to net earnings of $2.5 billion, or $2.28 per diluted share, in the same period last year.
  • Quarter’s earnings per share increased 16.2 percent from the same period in the prior year.

“The team demonstrated ongoing flexibility to operate effectively in a very challenging environment and deliver record-breaking sales and earnings. Our ability to grow the business by over $21 billion in fiscal 2020 is a testament to both the investments we have made in the business as well as our associates’ unwavering commitment to our customers,”  “We continue to lean into these investments because we believe they are critical in enabling market share growth in any economic environment. I am proud of the many ways our associates lived our values by serving our customers, communities and each other during these unquestionably challenging times, and I would like to thank them and our supplier partners for their extraordinary efforts.” stated Craig Menear, chairman, and CEO.

Fiscal 2020

  • Sales for fiscal 2020 were $132.1 billion, reporting an increase of $21.9 billion, or 19.9 percent, from fiscal 2019.
  • Comparable sales for fiscal 2020 rose 19.7 percent, and comparable sales in the U.S. also increased by 20.6 percent.
  • Net earnings for fiscal 2020 were $12.9 billion, or $11.94 per diluted share.
  • For fiscal 2020, diluted earnings per share rose 16.5 percent in comparison to the prior year.

Home Depot did not provide guidance for fiscal 2021, due to the pandemic uncertainty and its effects on consumer behavior. The company’s board announced an increase in its quarterly dividend by 10.0 percent to $1.65 per share payable on March 25, 2021, to shareholders as of March 11, 2021.

“We were pleased with our record financial performance in fiscal 2020. As we look ahead to fiscal 2021, while we are not able to predict how consumer spending will evolve, if the demand environment during the back half of fiscal 2020 were to persist through fiscal 2021, it would imply flat to slightly positive comparable sales growth and operating margin of at least 14 percent,” stated Richard McPhail, executive vice president, and CFO.

The Home Depot, Inc. (HD) is the world’s largest home improvement retailer with retail stores all across North America. The Home Depot sells building materials and home improvement products, as well as lawn and garden supplies, and provides installation, home maintenance, and professional service programs. To learn more about The Home Depot, Inc. (HD), and to continue to track its progress please vista Partners The Home Depot, Inc. Coverage Page

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives. 

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(Read Original Story: The Home Depot Announces Fourth Quarter and Fiscal 2020 Results; Increases Quarterly Dividend by 10 Percent in PR Newswire)


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