A shopper leaves a Home Depot with merchandise that she purchased on August 17, 2021 in Alexandria, Virginia.
Alex Wong | Getty Images
Home Depot on Tuesday said sales grew 11% in the fiscal fourth-quarter, as the retailer topped Wall Street’s expectations and said it sees sales growth ahead for 2022.
The company said it expects earnings per share growth to be in the low single-digits and sales growth to be “slightly positive” in the coming fiscal year.
Shares were up more than 1% in premarket trading.
Here’s what the home improvement retailer reported compared with what Wall Street was expecting for the quarter ended Jan. 31, based on a survey of analysts by Refinitiv:
- Earnings per share: $3.21 vs. $3.18 expected
- Revenue: $35.72 billion $34.87 billion expected
Net income for the fiscal fourth quarter grew to $3.35 billion, or $3.21 per share, from $2.86 billion, or $2.65 per share, a year earlier. Analysts surveyed by Refinitiv were expecting earnings per share of $3.18.
Net sales rose to $35.72 billion, topping expectations of $34.87 billion.
Home Depot’s same-store sales rose 8.1%, higher than the 5% gain that analysts expected, according to StreetAccount. Its same-store sales in the U.S. increased 7.6%.
Home Depot’s transactions fell in the quarter to 402.5 million, but average ticket rose to $85.11. That’s compared with 416.8 million visits and average ticket of $75.69 in the year-ago period. Sales per retail square foot also jumped to $571.79 from $528.01 in the year-ago period, signaling customers are taking on bigger projects or hiring contractors to tackle them.
The company recently announced a change in leadership. Company veteran and Chief Operating Officer Ted Decker will step into the role of CEO, as of March 1. Outgoing CEO Craig Menear will continue to serve as chair of the board.
Home Depot’s board approved a 15% increase in its quarterly dividend, which will be $1.90 per share.
As of Friday’s close, Home Depot shares are up 24% over the past 12 months and have outperformed the broader market. The S&P 500 is up about 11% over the past year. Shares closed on Friday at $346.87, down less than 1%. The company’s market value is $362.22 billion.
Read the company’s news release here.
This story is breaking. Please check back for updates.