HD Q3 FY24

As of October 27, 2024, Home Depot (NYSE: HD) reported total operating revenue of ¥119.81 billion, indicating strong market performance. Although year-over-year comparative data is not provided, the absolute figures suggest that the company's competitiveness and sales strategies in the retail market have been successful. This report highlights Home Depot's adaptability in the post-pandemic era, particularly amid rising consumer demand for home improvement and renovation.

Key Financial Metrics

• Total Operating Revenue: ¥119.81 billion, demonstrating strong market performance.

• Third Quarter Sales: $40.22 billion, an increase of 6.6% year-over-year, although comparable sales declined by 1.3%.

• Future Outlook: Sales for fiscal 2024 are expected to grow by approximately 4%, with comparable sales projected to decrease by about 2.5%.

• Impact of High Interest Rates: High interest rates and economic uncertainty are putting pressure on large renovation projects, presenting challenges to sales growth.

• New Store Opening Plans: Approximately 80 new stores are planned over the next five years, with about 12 new stores expected in fiscal 2024.

Peer Comparison

• Industry Overview: The overall retail industry experienced a recovery in 2024, particularly with significant demand for home improvement and building products. The home improvement market is expected to continue growing in the coming years, boosting the revenue of related companies. In this context, Home Depot has benefited, with revenue performance exceeding the industry average.

• Peer Performance Analysis: Home Depot's revenue is leading in the retail market. Despite a decline in comparable sales, the company's market share shows a relative competitive advantage amid high interest rates and economic uncertainty.

Summary

Home Depot has performed well in the current macroeconomic environment. Despite challenges such as high interest rates and economic uncertainty, the company's revenue and sales strategies have demonstrated resilience. Through a diverse product line and effective marketing strategies, Home Depot has maintained high competitiveness in the market.

Opportunities

• Rebounding Market Demand: The ongoing growth in post-pandemic home improvement and renovation demand offers significant market opportunities for Home Depot.

• New Store Openings: The planned new stores over the next five years will further expand market share.

• Digital Transformation: Increased investment in e-commerce platforms to enhance online sales capabilities aligns with changing consumer trends.

• Professional Customer Support: Strong sales performance in the professional customer segment presents further market development opportunities.

Risks

• Macroeconomic Impact: High interest rates and economic uncertainty may lead consumers to delay large purchases, affecting sales.

• Decline in Comparable Sales: Although overall sales are growing, the decline in comparable sales reflects potential market weakness.

• Competitive Pressure: As the industry recovers, increased competition may pressure Home Depot's market share.

• Lack of Consumer Confidence: Economic uncertainty may impact consumer purchasing decisions, further hindering sales growth.