Fiscal 2023 was a year of moderation for Home Depot, the company reported, but the company ended it with a Wall Street fourth-quarter beat and entered 2024 better positioned to push key strategies.
An analyst consensus estimate published by Yahoo Finance called for earnings per diluted share of $2.77 and revenues of $34.64 billion.
Comparable sales slipped 3.5% as comps in the United States declined 4% in the quarter year over year, Home Depot stated. Sales were $34.79 billion, down 2.9% from the year-before period. Operating income was $4.14 billion versus $4.75 billion in the year-previous quarter.
For the full year, net earnings were $15.14 billion, or $15.11 per diluted share, versus $17.11 billion, or $16.69 per diluted share, in the year earlier. Comps decreased by 3.2%, and U.S. comps fell 3.5% year over year. Sales for fiscal 2023 were $152.67 billion, down 3% from the year before. Operating income was $21.69 billion versus $24.04 billion in the year previous.
In a conference call, Ted Decker, Home Depot chair, president and CEO, said that, despite the tough economic environment faced in 2023, the company focused on managing operations to improve its position in stores, in part by investing $1 billion in hourly worker compensation, and in operations, including right-sizing inventory, while dealing with deflationary trends in some product categories.
As it enters fiscal 2024, Decker said inventory position is improved, programs to engage pro customers and win wallet share with them are advancing, the company is enhancing the interconnected shopping experience and will be building new stores.
“After three years of exceptional growth for our business, 2023 was a year of moderation,” said Decker in announcing the financial results. “During fiscal 2023, we focused on several initiatives to strengthen the business while also staying true to our strategic investments of creating the best interconnected experience, growing our pro wallet share through our unique ecosystem of capabilities, and building new stores. We remain excited about the future for home improvement and our ability to grow share in our large and fragmented market, which we estimate to be over $950 billion.”
