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HD NYSE· Home Depot, Inc
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HD NYSE· Home Depot, Inc
Earnings report Q4 2023

HD reports a slight decrease in net sales for the latest quarter.

Segments of revenue

HD's net sales for the quarter amounted to $37.71 billion, a decrease of 3.1% compared to the same quarter last year. The Building Materials merchandising department was the only segment that posted positive comparable sales, while all other merchandising departments experienced negative comparable sales.

Strengths

Despite the overall decrease in net sales, HD's Building Materials department showed positive comparable sales, indicating strength in that segment. Additionally, the company's gross profit margin remained relatively stable at 33.8% for the quarter, with lower supply chain costs partially offsetting the impact of price stabilization.

Challenges

HD faced challenges in the form of negative comparable sales in most of its merchandising departments, resulting in the overall decrease in net sales. The company also experienced a decline in customer transactions, with a 2.4% decrease compared to the same quarter last year.

Noteworthy

HD's average ticket, representing the average price paid per transaction, decreased by 0.3% during the quarter. This decrease was primarily attributed to U.S. commodity price deflation, which negatively impacted the average ticket by approximately 60 basis points. However, demand for new and innovative products partially offset this impact.

Summary

HD reported a slight decrease in net sales for the latest quarter, primarily driven by negative comparable sales in most merchandising departments. However, the Building Materials segment showed positive comparable sales, indicating strength in that area. The company's gross profit margin remained stable, with lower supply chain costs offsetting the impact of price stabilization. HD faced challenges in the form of declining customer transactions and a slight decrease in average ticket, attributed to U.S. commodity price deflation. Overall, HD's performance in the latest quarter reflects a mixed outcome with both strengths and challenges.

Source documents

Form 10-Q  filed on Nov 20, 2023
92 pages scanned

Reference data

Company financials Q4 revenue 34.79B
Analyst estimates Q4 EPS beat by 1.63%
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