The Home Depot, Inc. (HD) Q3 Earnings call transcript Nov 12, 2025
1min read In Home Depot's third quarter 2024 earnings call, the company reported sales of $40.2 billion, marking a 6.6% increase from the same period last year. Despite a 1.3% decline in comp sales and a 1.2% decrease in U.S. store comps, the company's adjusted diluted earnings per share stood at $3.78, down from $3.85 in the same quarter last year.
One of the notable highlights of the call was the impact of hurricanes Helene and Milton on the company's performance. Excluding these storms, the company's performance exceeded expectations, with better engagement in seasonal goods and the launch of a marketing campaign to build awareness of faster delivery speeds. Additionally, Home Depot's new Service Reserve Solution (SRS) has been performing well, contributing approximately $2.9 billion in sales in the third quarter.
Looking ahead, Home Depot expects total sales growth of approximately 4% in fiscal 2024, driven by the inclusion of SRS sales and the 53rd week. Comparable sales are projected to decline approximately 2.5%, while the company plans to open approximately 12 new stores. Gross margin is expected to be approximately 33.5%, and operating margin is projected at 13.5%, with adjusted operating margin expected to be approximately 13.8%.
Despite ongoing macroeconomic uncertainty and higher interest rates, Home Depot remains confident in its ability to grow market share. The company's focus on improving the interconnected retail experience, expanding into new markets, and enhancing its digital capabilities are key strategies for driving growth.
The earnings call also touched on the impact of tariffs and the potential for inflation, with Home Depot expressing confidence in its ability to manage through these challenges. The company's experience with previous tariffs and its scale have positioned it well to navigate any potential changes in trade policy.
Investors and analysts on the call also raised concerns about the impact of weather on sales, the potential for macroeconomic and political uncertainty to impact consumer spending, and the company's plans for scaling its sales force. Home Depot's management team provided insights into these issues, emphasizing their focus on weather-related sales, the importance of consumer confidence, and their ongoing efforts to optimize their sales force and credit offerings.
Overall, Home Depot's third quarter 2024 earnings call showcased the company's resilience in the face of macroeconomic challenges and its commitment to growth through innovation and operational excellence. As the company moves into the fourth quarter and beyond, it will be interesting to see how it continues to navigate the complex retail landscape and capitalize on opportunities for growth.