The Home Depot (NYSE: HD), the leading retailer in the home improvement sector globally, has announced a decrease in sales for the fourth quarter and fiscal year 2023, alongside a hike in its quarterly dividend.
During the fourth quarter, the company experienced a 2.9% decline in sales, totaling $34.8 billion compared to last year’s corresponding period.
This decrease was reflected in a 3.5% drop in comparable sales and a 4.0% decline in the U.S. market. Net earnings for the quarter amounted to $2.8 billion, or $2.82 per diluted share, marking a 14.5% decrease from the previous year’s figures.
For the full fiscal year, The Home Depot reported sales of $152.7 billion, representing a 3.0% decrease from the prior year. Comparable sales for the year also declined by 3.2%, with U.S. comparable sales down by 3.5%. Net earnings for the fiscal year stood at $15.1 billion, or $15.11 per diluted share, reflecting a 9.5% decline from fiscal 2022.
Ted Decker, the company’s chair, president, and CEO, acknowledged a year of moderation following three years of significant growth.
He outlined various initiatives to fortify the business, including enhancing customer experience, expanding market share among professional customers, and opening new stores.
Decker expressed optimism regarding the company’s future in the expansive and fragmented home improvement market.
Home Depot announced a 7.7% increase in its quarterly dividend to $2.25 per share, equating to an annual dividend of $9.00 per share.
The dividend is scheduled to be disbursed on March 21, 2024, to shareholders of record as of March 7, 2024.
Notably, this marks the 148th consecutive quarter in which the company has paid a cash dividend.
Looking ahead to fiscal 2024, The Home Depot anticipates a total sales growth of around 1.0%, factoring in the impact of an additional operating week.
Comparable sales are forecasted to decrease by approximately 1.0% for the 52 weeks, while the company plans to inaugurate roughly 12 new stores. Financial guidance has also been provided for margins, operating income, tax rate, net interest expense, and diluted earnings per share growth.
The Home Depot operates 2,335 retail stores across the United States, Canada, and Mexico, employing approximately 465,000 associates. Its stock is traded on the New York Stock Exchange (NYSE: HD).
This report is based on information from a press release issued by The Home Depot.
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