The Home Depot reported its 2024 fourth quarter and full-year financial results on Feb. 25, which showed an improvement in customer demand as the company broke a same-store decline in sales for 4Q, persisting over two years.

4Q Results

The Atlanta, GA-based home improvement retailer and contractor supplies distributor posted 4Q sales of $39.7 billion, up 14.1% or $4.9 billion year-over-year. Comparable (organic) sales increased 0.8%, while organic sales in the U.S. likewise increased 1.3%.

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Home Depot had seen a decrease in year-over-year same-store sales in each quarter since 4Q22, but it increased 0.8% in 4Q24, snapping a slide of eight straight quarters for that metric seen as a good measure of a retailer’s health.

Operating profit of $4.4 billion increased by 8.5% year-over-year, while operating margin of 11.3% declined from 4Q23’s margin of 11.9%. Net profit of $13.03 billion increased 13.3% year-over-year from 4Q23’s $11.5 billion.

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HD’s 4Q consisted of 14 weeks compared with the 13 weeks for the prior year, the additional week — not factored into comparable results — added approximately $2.5 billion in sales for 4Q24.

“Our fourth quarter results exceeded our expectations as we saw greater engagement in home improvement spend, despite ongoing pressure on large remodeling projects,” Home Depot Chair, President and CEO Ted Decker said in the company’s financial release.

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2024 Results

For its full-year, Home Depot posted sales of $159.5 billion, up 4.5% or $6.8 billion year-over-year. Organic sales decreased 1.8%, while organic sales in the U.S. likewise decreased 1.8%.

Operating profit of $21.5 billion and operating margin of 13.5% trailed 2023’s $21.6 billion/14.3%. Meanwhile, net profit of $53.3 billion increased 4.6% year-over-year.

Decker added: “Throughout the year, we remained steadfast in our investments across our strategic initiatives to position ourselves for continued success, despite uncertain macroeconomic conditions and a higher interest rate environment that impacted home improvement demand. I would like to thank our associates for all that they do to serve our customers and communities.”

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SRS Distribution Impact

In Home Depot’s earnings call with analysts, the company shared that SRS Distribution contributed $6.4 billion in sales for the seven months it owned the company, with its landmark $18 billion acquisition completed during June. That is the same contribution Home Depot forecasted in its 3Q report. HD didn’t share specifics of SRS’ sales during 4Q.

2025 Outlook

Looking forward, Home Depot expects sales to increase approximately 2.8%, while organic sales are expected to increase 1.0%. The company said it expects to open 13 new stores in 2025.

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Home Depot anticipates a 2025 gross margin of approximately 33.4% and an operating margin of 13.0%.

Home Depot predicts SRS Distribution’s — No. 4 on MDM’s 2024 Top Distributors List for Building Materials & Construction Supplies — revenue to grow in the mid-single digits during 2025.