Buyers always abandon Home Depot, the new data show - this is why
Sales took another blow during the last quarter, but the leaders remain full of hope for 2024.
Unless you are partial in your local hardware store, you are heard in well -known retailers like Lowe's or Home Depot when starting a new project. These stores are large operations, offering a wide variety of products and services to check items on your shopping and task lists. However, in recent years, customers have worked less and less at these retailers, according to business data. Read more to find out why buyers always abandon Home Depot.
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Sales and income were both decreasing in the last quarter of fiscal year.
On February 20, Home Depot Reported results From the fourth quarter of 2023. Sales totaled $ 34.8 billion, which represents a drop of 2.9% compared to the same period in 2022. Net profit in the fourth quarter also fell to 2, 8 billion dollars against $ 3.36 billion in the same quarter last year.
In addition, the average cost of tickets and customer transactions decreased in the fourth quarter compared to the same period in 2022, falling by 1.3% and 2.1%, respectively.
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Some different factors had an impact on sales.
For a February 20 profit call ,, Spoil Throwing , president, president and chief executive officer of Home Depot, said that the 2023 results were "largely in line with our expectations", but attributed certain Home Depot struggles to an excess inventory.
Home Depot's financial director Richard McPhail developed on the situation in a conversation with CNBC, stressing that The request has slowed down In 2023, customers returning to more normal spending habits. He also cited the increase in interest rates as a point of pain: as CNBC reported, some consumers do not buy new houses due to these higher rates.
At the same time, consumers do not invest in their current homes either. According to McPhail, they put pressure on larger projects and those who need loans, due to the high costs of the loan.
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This is not all bad news.
While sales were a little discouraging, Home Depot beat the expectations of Wall Street gains and income, CNBC reported. The profit per share had to reach $ 2.77, but ended at $ 2.82. Likewise, income should reach $ 34.64 billion, but have ended up totaling $ 34.79 billion. And in general, managers are optimistic about the future of Home Depot.
"Our market is on the way back to normal demand conditions," McPhail told CNBC. "We are not yet quite there, but the pressures we saw in 2023 smuggling." AE0FCC31AE342FD3A1346EBB1F342FCB
Illustrating this, Home Depot hopes for a 1% increase in sales during the year 2024, compared to an increase of 1.6% planned by Wall Street, CNBC reported.
In general, 2023 was a difficult year for Home Depot.
Overall, in 2023, Home Depot sales totaled $ 152.7 billion, which was a decrease of 3% compared to 2022, according to the press release of February 20 - and the last results follow several quarters of decrease of sales .
Decker labeled 2023 "one year of moderation", given the previous overvoltage of the request during the COVID-19 pandemic. At that time, people had more money to spend to renovate their homes.
He added: "During the financial year 2023, we focused on several initiatives to strengthen the company while remaining faithful to our strategic investments for creating the best interconnected experience, of the growth of our pro portfolio share Through our unique capacity ecosystem and the construction of new stores. We remain enthusiastic about the future for the improvement of the house and our ability to increase the share of our large fragmented market, which we estimate to exceed 950 billion Dollars. "
