Home Depot Q1 revenue beats forecasts, comparable sales miss

14th May 2024 11:36

(Sharecast News) - Home Depot reported a slight dip in first-quarter comparable sales on Tuesday, although its earnings per share of $3.63 slightly surpassed analysts' expectations of $3.60.

The DIY retailer said revenue for the quarter totaled $36.42bn, missing the consensus projection for $36.66bn.

Year-on-year comparable sales fell by 2.8%, exceeding analysts' predictions of a 2.19% decline.

In the US in particular, comparable sales dropped 3.2%, compared to the estimated 2.35% decrease.

However, Home Depot reaffirmed its guidance for the 2024 financial year, even before any potential impacts from its impending acquisition of SRS Distribution, which was yet to close.

Anticipating total sales growth of about 1%, including the extra 53rd week of the financial year, Home Depot said it foresaw the extra week contributing about $2.3bn to total sales.

Comparable sales were thus expected to decrease by around 1% for the 52-week period.

"The team executed at a high level in the quarter, and we continued to grow market share," said chair, president and chief executive officer Ted Decker.

"And while the quarter was impacted by a delayed start to spring and continued softness in certain larger discretionary projects, we feel great about our store readiness, our product assortment in stores and online, and our associate engagement.

"Our associates are energised and ready to serve our customers as spring breaks across the country."

At 0654 EDT (1154 BST), shares in the Home Depot were up 1.77% in pre-market trading in New York, at $347.00.

Reporting by Josh White for Sharecast.com.