Sales Of Home Depot Grew 11% In Fourth Quarter

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Home Depot Inc (NYSE:HD) had a stellar fourth quarter as its sales grew by 11%, topping Wall Street’s expectations. After the release of its earnings report, the giant retailer is also betting on solid sales growth in 2022.

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As reported by CNBC, sales of Home Depot grew 11% in Q4 and anticipated “slightly positive” growth sales and low single-digits earnings per share for the upcoming fiscal year.

The retailer reported earnings per share of $3.21 against a $3.18 expectation, while revenue was better than expected, $35.72 billion versus $34.87 billion.

“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,” the media outlet reports.

While analysts expected same-store sales to rise 5% for the quarter, the item grew by 8% globally and 7.6% in the U.S. alone. Further, despite transactions dropping to 403.5 million, the average ticket jumped to $85.11 from $75.69 the same period the year before.

“Home Depot’s board approved a 15% increase in its quarterly dividend, bringing it to $1.90 per share.”

Rising DIY

Home Depot’s success during the pandemic is also evident in last quarter’s sales per retail square foot, which went up from $528.01 to $571.79 in Q42020.

The solid results also depict American’s revamped appetite for do-it-yourself projects and home renovation during Covid. Also, while boomers decide to remain in their properties, millennials are moving into their first homes.

Further, housing stock in the U.S. is aging rapidly, which has triggered increasing numbers of repair and renovation projects, which also have the purpose of adjusting their homes for remote work.

As these trends settle, Home Depot will have a new CEO as of March 1 when Craig Menear steps down from the job to be replaced by current Chief Operating Officer Ted Decker.

“As of Friday’s close, Home Depot shares are up 24% over the past 12 months and have outperformed the broader market,” CNBC reports.