Proactive Investors - Home Depot Inc (NYSE:HD, ETR:HDI) saw a decline in discretionary consumer spending in 2023, leading to a drop in full-year sales and earnings, according to its latest financial results published on Tuesday.
For the full year, comparable sales fell 3.2% to $152.7 billion, with diluted earnings per share decreasing 9.5% to $15.11.
For the fourth quarter, comparable sales fell 3.5% year on year to $34.8 billion.
Net earnings for the fourth quarter were $2.8 billion, or $2.82 per diluted share, compared with net earnings of $3.4 billion, or $3.30 per diluted share, in the same period of fiscal 2022.
CEO Ted Decker called 2023 a “year of moderation” following what was “three years of exceptional growth for our business”.
"During fiscal 2023, we focused on several initiatives to strengthen the business while also staying true to our strategic investments of creating the best interconnected experience, growing our pro wallet share through our unique ecosystem of capabilities, and building new stores.
“We remain excited about the future for home improvement and our ability to grow share in our large and fragmented market, which we estimate to be over $950 billion. I also want to thank our associates for their hard work and dedication to serving our customers and communities."
Year of moderation or not, Home Depot’s board approved a 7.7% increase in its quarterly dividend to $2.25 per share, which equates to an annual dividend of $9 per share.
For fiscal 2024, Home Depot sees comparable sales falling another 1%, with gross margins of approximately 33.9%.
Following these underwhelming results, shares are expected to fall more than 2.5% to $352.7 when markets open.