Individuals put on protecting face masks exterior Residence Depot within the Flatiron district as the town continues Section 4 of re-opening following restrictions imposed to gradual the unfold of coronavirus on August 8, 2020 in New York Metropolis.
Noam Galai | Getty Photographs
Home Depot is about to report its fiscal fourth-quarter earnings earlier than the bell Tuesday.
Here is what Wall Avenue is anticipating, based mostly on Refinitiv’s consensus estimates:
- Earnings per share: $2.62, anticipated
- Income: $30.73 billion, anticipated
The retailer’s outcomes will point out whether or not pandemic tendencies and the true property market proceed to elevate house enchancment gross sales. The corporate can also be making ready for spring, which is often its busiest season.
In the course of the pandemic, People have had a “nesting” mindset and their properties have served a variety of functions, from distant classroom and workplace to fitness center. Shoppers have taken up do-it-yourself projects and hired professionals for house renovations. Some have moved out of densely populated cities and bought houses in suburban or rural areas, as they search more room or benefit from low rates of interest.
At Residence Depot, that has boosted enterprise. Its U.S. same-store gross sales grew by about 25% within the second and third quarters, as shoppers visited the retailer’s shops and web site extra and spent more cash. Its digital gross sales rose 80% yr over yr within the third quarter, with prospects choosing up most of these on-line orders at shops.
Analysts count on Residence Depot’s same-store gross sales will develop by 19.2% within the fourth quarter, a big achieve however slower charge than the height of the pandemic, in line with a StreetAccount survey.
Residence Depot has not supplied an outlook for the yr. It faces powerful comparisons within the coming quarters due to the large numbers it put up in the course of the pandemic. It could must work tougher for pockets share, too, as shoppers get Covid-19 vaccines and spend weekends out to dinner or on trip as a substitute of portray or doing restore tasks. Its gross sales might be buoyed, nonetheless, by a rebound of house professionals’ companies, as shoppers really feel extra comfy inviting folks into their homes and pay for tasks they delay or could not deal with on their very own.
About 45% of Residence Depot’s gross sales come from professionals, corresponding to plumbers, electricians and contractors, with the remaining coming from do-it-yourself prospects. That is a better proportion from rival Lowe’s, which will get 20% to 25% of its gross sales from professionals. Residence Depot additionally counts bigger house professionals as shoppers.
Residence Depot might construct on that benefit with HD Provide. It acquired the former unit of the company and large industrial products distributor in November in a deal valued at $8 billion.
As of Monday’s shut, Residence Depot’s shares are up greater than 12% from a yr in the past. The corporate’s market worth is $296.98 billion.
This story is creating and shall be up to date.