The Home Depot Inc. reported Feb. 20 that its online sales increased about 2% yr over yr in its fiscal fourth quarter ended Jan. 28.
Meanwhile, total Home Depot Q4 sales decreased 2.9% yr over yr to $34.8 billion. Comparable sales within the quarter decreased 3.5%; within the U.S. specifically, they decreased 4%. As well as, Home Depot net earnings for the quarter were $2.8 billion, a year-over-year drop from $3.4 billion.
For the complete yr, Home Depot sales decreased 3% to $152.7 billion. Overall comparable sales decreased 3.2%, and that figure is barely higher within the U.S., where they decreased 3.5%. In turn, Home Depot net earnings for its fiscal 2023 decreased to $15.1 billion from $17.1 billion in its fiscal 2022. A part of the sales decrease comes from Home Depot investing $1.5 billion in three acquisitions.
Home Depot sales decreased 2.5% yr over yr in November and eight.5% in January. They increased 1.1% in December.
“After three years of remarkable growth for our business, 2023 was a yr of moderation,” said Ted Decker, chair, president and CEO, in a Feb. 20 earnings call with investors. He added that Home Depot entered 2023 with more inventory “than we might’ve preferred.”
Home Depot is No. 4 within the Top 1000, Digital Commerce 360’s database of the biggest online retailers in North America.
Home Depot online sales in Q4
In Q4, Home Depot fulfilled nearly half of its online sales through its physical stores, said William Bastek, executive vp of merchandising. Home Depot didn’t attach a dollar figure to its online sales, nor did it specify the proportion of total sales that Home Depot’s online sales represent.
Ann-Marie Campbell, senior executive vp, said Home Depot made “significant progress taking friction out” of its online order-management process. It has enhanced its systems to raised allow Home Depot customers to switch orders and self-service online returns.
“In 2024, we’ll give attention to constructing more robust capabilities to support an interconnected self-service returns process where customers could have the flexibility to begin a return online and complete that return via mail or in-store,” Campbell said.
It opened 13 stores in its 2023 fiscal yr — eight within the U.S. and five in Mexico — bringing the variety of Home Depot stores to 2,335. Campbell also said Home Depot plans to open 80 latest stores in the subsequent five years, including 12 latest stores in its fiscal 2024.
“After we put money into latest assets and capabilities to raised serve the complex Pro, this also improves our Pro experience in our stores,” Campbell said. “For instance, more job site delivery orders fulfilled from our distribution centers means less congestion in our stores and fewer time dedicated to picking, packing and staging orders for delivery.”
The flexibility for Home Depot to meet larger orders through its distribution network means it should have more product in stock for Pros shopping within the retailer’s physical stores, she added.
Home Depot B2B and DIY sales
Q4 sales to Home Depot Pro and DIY customers were “relatively in step with each other,” Bastek said.
To spice up sales to its skilled customers, Home Depot acquired Construction Resources in December. Construction Resources is a distributor for design-oriented surfaces, appliances and architectural specialty products.
Home Depot can be working “on latest order-management capabilities to raised manage complex Pro orders,” Decker said. “For the complex Pro opportunity, which means that by the tip of 2024, we could have 17 of our top Pro markets equipped with latest success options, localized product assortment and expanded sales force and enhanced digital capabilities with trade credit and order management in pilot for development.”
Home Depot earnings
For its fiscal fourth quarter ended Jan. 28, 2024, Home Depot reported:
- Total sales declined 2.9% yr over yr to $34.8 billion.
- Home Depot online sales grew 2%.
- Comparable sales declined 3.5%. Within the U.S., they decreased 4%.
- Net earnings were $2.8 billion.
For its fiscal yr ended Jan. 28, 2024, Home Depot reported:
- Total sales declined 3% to $152.7 billion.
- Comparable sales decreased 3.2%. Within the U.S., they declined 3.5%.
- Net earnings were $15.1 billion, down from $17.1 billion the previous yr.
Percentage changes may not align exactly with dollar figures as a consequence of rounding. Check back for more earnings reports. Here’s last quarter’s comparison of Home Depot and Lowe’s online sales.
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