Home Depot Reports Solid Fourth-Quarter Earnings and Positive 2025 Outlook

Home Depot released better-than-expected 2024 fourth-quarter earnings. The impressive figures revealed an increase in customer traffic and higher spending per order at its stores and online.

Home Depot’s revenue for the quarter that ended on Feb. 2 reached $39.7 billion, a slight improvement over analysts’ predictions of $39.16 billion, according to CNBC. Q4 2024’s revenue was a 14% increase from Q4 2023’s $34.79 billion. Net income rose from $2.80 billion to $3 billion year-over-year.

“Our fourth quarter results exceeded our expectations as we saw greater engagement in home improvement spend, despite ongoing pressure on large remodeling projects,” said CEO Ted Decker in the company’s earnings statement.

Home Depot’s same-store sales, which measures income from locations open at least a year, climbed 0.8%. Prior to this recent earnings report, the retailer posted eight consecutive quarter losses in comparable store sales.

Both in-store and online, customers spent an average of $89.11 per order, roughly $0.24 more than in Q4 2023. Total customer transactions rose by 8% to just over 400 million.

Compared to the same period in 2023, online sales grew 9%. Decker credited the uptick to faster deliveries of appliances and power tools.

Home Depot Full-Year Earnings and 2025 Outlook

For fiscal 2024, Home Depot posted revenue of $159.5 billion, a 4.5% jump compared to 2023. Yet, comparable sales fell 1.8% for the year. Net earnings came in at $14.8 billion, somewhat under 2023’s $15.1 billion.

While comparable sales did fall, they were better than Home Depot’s earlier projections for 2024. In August of last year, the retailer feared consumers would put projects on hold and predicted a full-year comparable sales drop of 3% to 4%.

Home Depot expects total sales growth of 2.8% by the end of 2025. Instead of dropping, comparable sales will likely rise by 1%.

Even with the promising numbers for this year, the home improvement retailer is concerned with higher interest rates potentially discouraging customers. Yet, Home Depot CFO Richard McPhail told CNBC that consumers will ultimately see the rates as the new normal and move forward with projects instead of sitting on the sidelines waiting for better economic conditions.

“Their families are growing. They’re moving for a new job. They’re upsizing their home. They want to upgrade their standard of living,” McPhail said.