Home Depot (HD) Experiences Sixth Consecutive Quarter of Declining Same-Store Sales: A Deep Dive into S&P 500’s Financial Performance

• Home Depot (HD), a component of the S&P 500, reported first-quarter earnings that surpassed expectations, while revenue slightly missed forecasts.
• The company also reaffirmed its 2024 guidance, following which the stock saw a slight increase in early Tuesday trading.
• Despite a decrease in same-store sales, CEO Ted Decker expressed confidence in the company’s market position and readiness for the future.

Home Depot reports better-than-expected Q1 earnings and reaffirms 2024 guidance, despite a slight dip in revenue and same-store sales. The stock sees a modest rise in early Tuesday trading.

Home Depot Q1 Earnings Overview

Home Depot’s Q1 earnings fell 5% to $3.63 per share, while sales totaled $36.42 billion, a decline of over 2% compared to Q1 2023. Analysts had predicted an EPS of $3.60 and revenue of $36.65 billion, according to FactSet. The company saw a 2.8% drop in total same-store sales, with U.S. same-store sales falling by 3.2%. The last increase in same-store sales was reported in Q3 2022.

CEO’s Statement and 2024 Guidance

CEO Ted Decker stated in the earnings release that despite a delayed start to spring and continued softness in certain larger discretionary projects, Home Depot continued to grow its market share in the first quarter. The company also reaffirmed its full-year guidance, expecting 2024 revenue and EPS to grow around 1%, while forecasting a 1% decrease in same-store sales for the year.

Home Depot Stock Performance

Home Depot shares edged up 0.6% during premarket trade on Tuesday. The stock, which is part of the S&P 500, fell 1.6% to 340.96 on Monday but has risen around 2% in May. In late March, Home Depot announced an $18 billion deal to increase its focus on professional markets by acquiring Texas-based SRS Distribution. Despite this, the stock has pulled back since the announcement of the SRS deal.

Conclusion

Despite a slight dip in Q1 revenue and same-store sales, Home Depot’s earnings beat expectations and the company reaffirmed its 2024 guidance. The stock saw a modest rise in early Tuesday trading. The company’s focus on professional markets and its recent acquisition of SRS Distribution signal its strategic efforts to strengthen its market position.