In the fourth quarter of 2024, Home Depot surpassed Wall Street revenue forecasts by reporting $39.7 billion, a 14% increase from the previous year. However, CEO Ted Decker and CFO Richard McPhail indicated that customers continue to delay significant renovation projects due to a higher interest rate environment. While comparable sales showed modest growth at 0.8% globally and 1.3% in the U.S., the company's forecasts for 2025 did not meet analyst expectations, predicting only a 2.8% sales growth against a 3% outlook from analysts.
Home Depot beat Wall Street revenue estimates for Q4 2024, reporting $39.7 billion, but noted ongoing pressure on larger home improvement projects due to high interest rates.
CEO Ted Decker attributed better-than-expected revenue to 'greater engagement' in home improvement, while indicating that high interest rates have adversely impacted demand for renovations.
CFO Richard McPhail stated that while high interest rates have affected home improvement demand, the company anticipates a return as this 'higher rate environment' stabilizes.
Despite the marginal revenue increase, Home Depot's forecast for 2025 fell short of analyst expectations, projecting a sales growth of 2.8% compared to the anticipated 3%.
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