$HD (+1,1%) | Home Depot Q3 '24 Earnings Highlights:

🔹 Adjusted EPS: $3.78 (Est. $3.66) 🟢

🔹 Revenue: $40.22B (Est. $39.29B) 🟢; UP +6.6% YoY

🔹 Merchandise Inventories: $23.90B (Est. $23.33B) 🟡

🔹 Total Comp Sales: -1.3% (Est. -3.27%) 🟢

FY'24 Guidance:

🔹 Total Sales Growth: +4% (prior: 2.5%-3.5%) 🟢

🔹 FY Comp Sales: -2.5% (prior: -3% to -4%) 🟢

🔹 FY EPS Growth: Approximately -2% (prior: -2% to -4%) 🟡

🔹 Gross Margin: Approx. 33.5%

🔹 Operating Margin: Approx. 13.5%

🔹 53rd Week Expected Sales Contribution: Approx. $2.3B; Expected EPS Impact: +$0.30/share

🔹 12 New Stores Planned in FY '24

Q3 Operational Highlights:

🔹 U.S. Comp Sales: -1.2%

🔹 Operating Margin 13.5% (prev. 14.3% in Q3 '23)

🔹 Adj Operating Margin 13.8% (prev. 14.5% in Q3 '23)

🔹 Average Ticket: $88.65 (prev. $89.36 YoY)

🔹 Customer Transactions: 399M; Sales per Retail Square Foot: $582.97 (DOWN -2.1% YoY)

CEO Ted Decker's Commentary:

🔸 "Our third quarter exceeded expectations with better engagement in seasonal and outdoor projects, as well as sales related to hurricane demand. I commend our associates for their commitment to serving customers and communities amid macroeconomic uncertainties."

Additional Insights:

🔸 Hurricane-related repairs and favorable weather contributed to stronger seasonal sales, including outdoor items and emergency preparedness materials.

🔸 Demand is driven by ongoing home improvement needs, particularly among customers deferring larger projects due to high mortgage rates.

🔸 SRS Distribution acquisition added a substantial sales lift, contributing to the overall revenue growth.