ATLANTA – – Home Depot broke a two -year slump in the same business sales in the fourth quarter.
It happens that customer demand has improved in a real estate market that has been burdened by rising mortgage interests and a lack of houses for sale.
The background story:
Home Depot has navigated a challenging landscape on the US housing market, which has been in a break-in since 2022. The downturn began when the mortgage rates of deep stalls rose from pandemic, which led to a decline in sales previously occupied. In January, sales fell 4.9% compared to December and, according to the National Association of Realors, reached a season -adjusted annual rate of 4.08 million units. Despite a larger selection of real estate, rising mortgage interests and prices have abolished many potential buyers. Real estate prices rose in 19 consecutive months, with the national median sales price increased by 4.8% in January compared to the previous year to $ 396,900.
What we know:
Home Depot broke a two -year slump in sales with the same business in the fourth quarter, since customer demand improved despite the demanding real estate market. The company's turnover in Atlanta rose from $ 34.79 billion to $ 39.7 billion and exceeded the expectations of the analysts of $ 39.15 billion. An additional week a quarter contributed around $ 2.5 billion, although this was not included in the sales results in the same business. Sales in shops open for at least one year, an important indicator of the health of a retailer, whereby sales with comparable business rose by 1.3%by 0.8%. This is the first quarterly increase since January 2023 and exceeds the expected withdrawal of 1.5% of Wall Street.
What you say:
Neil Saunders, Managing Director of Globaldata, noted: “The fact that comparable sales in the United States are black again after it has decreased eight quarters or two years back. Ted Decker, said: “Our results of the fourth quarter have exceeded our expectations because despite the continuing pressure on large conversion projects, we have a stronger expenses for the home improvement. “
According to the numbers:
Home Depot earned 3 billion US dollars or $ 3.02 per share compared to 2.8 billion US dollars or $ 2.82 per share in the previous year. With the exception of certain items, the result was $ 3.13 per share and exceeded the forecast of Wall Street of USD 3.04 per share. Customer transactions rose by 7.6%in the quarter, with the average ticket amount rose from $ 88.87 to $ 89.11 last year. The stocks rose by more than 3%in lunch trading.
What's next:
With a view to the future, Home Depot expects a decline in the Pro share gain of around 2% this year, whereby sales growth of around 2.8% is forecast. Decker emphasized that fewer people move and delay repairs and conversions in their current houses. He noticed: “Our surveys in the past few months, more than project costs and higher interest rates, number 1 that quoted people in our surveys were general macroeconomic and even political uncertainty.” Retailers such as Home Depot for house improvements continue to fight with homeowners who postpone larger projects due to higher credit costs and inflation problems.
The source: This article by Associated Press is based on the Home Depot Entry Report.