Home Depot Faces Revenue Beat as Home Improvement Challenges Come Into Focus
Home Depot's fourth-quarter revenue topped Wall Street's low expectations, driven by a 14.1% year-over-year increase in revenue to $39.7 billion. The company's adjusted earnings per share grew to $3.13, beating estimates of $3.04. However, same-store sales growth rose only 0.8%, and sales were boosted by higher foot traffic and an uptick in average ticket size.
- The modest increase in revenue suggests that Home Depot is adapting to the current home improvement landscape, where shoppers are prioritizing smaller projects over major renovations.
- How will Home Depot's continued success be impacted by the escalating trade tensions and tariffs on imported goods, which could affect its supply chain and pricing strategies?