Home Depot (HD) Q1 2024 Earnings | Wilnesh News

The Home Depot The retailer, which will report its latest earnings results on Tuesday, works to attract more sales from home professionals such as roofers and landscapers.

According to a survey of analysts by London Stock Exchange Group (LSEG), Wall Street’s expectations for the first quarter are as follows:

• Earnings per share: Estimate $3.60
• Revenue: Estimated $36.66 billion

Home Depot is dealing with a tougher housing situation that’s dampening demand for do-it-yourself projects. About half of Home Depot’s sales come from DIY customers and the other half from professionals.

As interest rates remain high, consumers have been reluctant to move out of their homes and into new homes, and this liquidity often inspires residential projects. They also reduced the number of big-ticket purchases they made and took on more modest projects.

Inflation may also play a role in this pullback, as consumers spend more on necessities and have to make trade-offs when spending their discretionary income.

Home Depot’s sales are slowing after more than two years of explosive demand during the coronavirus pandemic. The company posted its worst revenue decline in nearly two decades and cut its forecast for last year’s first quarter. For the fiscal year ended in January, Home Depot’s sales totaled $152.7 billion, down 3% annually.

To overcome these challenges, the home improvement retailer has accelerated its strategy to attract professionals, who tend to buy in larger quantities and provide a more consistent source of sales. Home Depot announced at the end of March that it would acquire SRS Distribution for $18.25 billion, the largest acquisition in the company’s history. Professional distributor. Home Depot has a growing network of distribution centers across the country that can store and deliver roofing shingles, insulation and other supplies directly to job sites.

In addition to attracting professionals, Home Depot is trying to drive growth by opening a dozen new stores this fiscal year and adding features to improve its online and in-store experiences.

Home Depot said in March it expected total sales to grow about 1% in fiscal 2024, which also includes the one-week period. However, the retailer said it expects comparable sales (excluding the impact of store openings and store closures) to decline by approximately 1%, excluding the impact of the extra week.

Home Depot shares closed at $340.96 on Monday. Shares of Home Depot have fallen about 2% so far this year, while the S&P 500 has gained about 9%.

This is a development story. Please check back for updates.