Home Depot posted net earnings in its fourth quarter that beat Wall Street estimates despite a slight year-over-year decline in comparable sales. The retailer also announced a major investment in employee development and compensation.
Net earnings for the fourth quarter by Home Depot were $3.36 billion, or $3.30 per diluted share, versus $3.35 billion, or $3.21 per diluted share, in the fiscal 2021 period, the company reported. Net earnings beat a Yahoo Finance analyst consensus estimate of $3.28 while sales came in a bit short of a $35.97 billion estimate.
Comparable sales decreased 0.3% for the company and in the United States in the quarter year over year. Net sales were $35.83 billion, up 0.3% from the 2021 period. Operating income was $4.75 billion versus $4.83 billion in the year-before quarter.
For the full fiscal year, net earnings were $17.11 billion, or $16.69 per diluted share, versus $16.43 billion, or $15.53 per diluted share, in fiscal 2021, the company stated.
Comps for fiscal 2022 increased 3.1%, for the company and 2.9% in the U.S. year over year. Sales were $157.4 billion, up 4.1% from fiscal 2021. Operating income was $24.04 billion versus $23.04 billion, in the year before.
“Fiscal 2022 was another record year for The Home Depot as our team continued to successfully execute in a challenging and dynamic environment,” said Ted Decker, chair, president and CEO. “Our ability to deliver growth on top of the $40 billion of sales growth achieved over the prior two-year period, while navigating persistent inflation, ongoing global supply chain disruptions, and a tight labor market, is a testament to investments we have made in the business, as well as our associates’ relentless focus on our customers. I would like to thank our associates and our many partners for their hard work and dedication to our customers.”
In addition to the financial results, Home Depot announced that it would make investments in wage, benefits, training and career development for its employees including $1 billion in annualized compensation for frontline hourly workers
“The most important investment we can make is in our people. We believe this investment will position us favorably in the market, enabling us to attract and retain the level of talent needed to sustain the customer experience we strive to deliver,” Decker said.
