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
Dow 30 component, Home Depot reported Q4 earnings last month, performing ahead of expectations boosted by the successful holiday season. The company invested in an $11B 3 year investment program focused to integrate its brick-and-mortar stores and its online business. Home Depot’s digital shopping experiences have been enhanced to offer better functionality and easy usage of its app, informed Home Depot CEO, Craig Minear.
“We’re excited about our e-commerce business as part of a whole interconnected retail strategy. We believe that the front door of our store is now in the customer’s pocket, it’s on the job site, that most of our customer’s shopping experience actually starts in the digital world even if it finishes in the physical world.” stated CEO, Craig Menear in an earnings call.
Highlights from the earnings release:
- EPS of $2.28 reported versus $2.10, expected.
- Revenue of $25.78 billion was generated in comparison to $25.76 billion, expected.
- Same-store sales witnessed an increase of 5.2% much ahead of expectations at 4.8%.
- The company plans to spend $3.9 billion, up from $3.6 billion in 2019 and $3.3 billion in 2018.
- The company reported its net income increase by 5.8% to $2.48 billion, or $2.28 a share for the quarter ending Feb 2, from $2.34 billion, or $2.09, a year earlier.
- Its sales per square foot were $425.70 witnessing a 3% increase.
- The average ticket also rose to $68.29, up about 4% from $65.59 a year earlier.
Home Depot revised its forecast depicting total sales growth of 3.5% to 4% and same-store sales growth of 3.5% to 4%. The home improvement chain plans to open six new stores in 2020 and increased its dividend by 10%. The company is planning to hire 80,000 additional employees to gear up for the spring season.
Home Depot’s annual guidance did not include any effect from the Coronavirus outbreak. Home Depot executive vice president of merchandising Edward Decker stated that 70% of the company’s products are sourced from the U.S.
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