Home Depot beat a Wall Street earnings estimate despite a slide in overall fourth-quarter sales and profits as comps during the period showed a small improvement.
Net earnings were $2.57 billion, or $2.58 per diluted share, versus $3 billion, or $3.02 per diluted share, in the year-previous quarter. Adjusted for one-time events, diluted earnings per share were $2.72 versus $3.13 in the year-before period. A 14th week in fiscal 2024 added about 30 cents to diluted earnings per share and adjusted diluted earnings per share for the fourth quarter and full fiscal year, the company stated.
Earrings per adjusted diluted share topped a Zacks Investment research estimate of $2.52 with revenues of $38.3 billion barely short.
Fourth-quarter comparable sales increased 0.4%, with the comps in the United States gaining 0.3% year over year. Sales came in at $38.2 billion, down 3.8% from the year-earlier quarter. Home Depot noted that the extra week in fiscal 2024 added $2.5 billion to fourth quarter and full year sales.
Operating income was $3.85 billion versus $4.5 billion in the year-prior quarter, while adjusted operating income was $4.02 billion versus $4.64 billion..
For the full fiscal year, net earnings were $14.16 billion, or $14.23 per diluted share, versus $14.81 billion, or $14.91 per diluted share, in the year previous. Adjusted for one-time events, diluted earnings per share were $14.69 versus $15.24 in fiscal 2024 in the year before.
Net sales for the full fiscal year were $164.68 billion, up 3.2% from the year earlier. Operating income was $20.89 billion versus $21.53 billion in the year prior, while adjusted operating income is $21.5 billion versus $21.95 billion.
Home Depot guidance for fiscal 2026 includes total sales growth of 2.5% to 4.5% and adjusted diluted earnings-per-share coming in from flat to up 4%.
In a conference call, Billy Bastek, Home Depot executive vice president of merchandising, said that, on the do-it-yourself side of the business, the company enjoyed strength across gift center events, hand tools, storage, portable power and hardscapes during the fourth quarter. Sales related to large discretionary projects remain pressured. He added that average ticket advanced even as comp transactions declined.
Ted Decker, Home Depot chair, president and CEO (pictured above), said in announcing the financial results, “Throughout fiscal 2025, our teams did an incredible job engaging with our customers and growing market share. 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.”
