Consumer Behavior

Home Depot's Q4 boasts record breaking sales, earnings

Photo by istock.com

February 24, 2021

Despite an ongoing pandemic, home improvement retail Home Depot had a record-breaking Q4 sales and earnings.

Sales for the fourth quarter of fiscal 2020 were $32.3 billion, an increase of $6.5 billion, or 25.1%, from the fourth quarter of fiscal 2019, according to a press release. Comparable sales for the fourth quarter increased 24.%, and comparable sales in the U.S. increased 25.%.

Net earnings for the fourth quarter were $2.9 billion, or $2.65 per diluted share, compared with net earnings of $2.5 billion, or $2.28 per diluted share, in the same period of fiscal 2019.

Sales for fiscal 2020 were $132.1 billion, an increase of $21.9 billion, or 19.%, from fiscal 2019. Comparable sales for fiscal 2020 increased 19%, and comparable sales in the U.S. increased 20.6%.

Net earnings for fiscal 2020 were $12.9 billion, or $11.94 per diluted share, compared with net earnings of $11.2 billion, or $10.25 per diluted share, in fiscal 2019.

"The team demonstrated ongoing flexibility to operate effectively in a very challenging environment and deliver record-breaking sales and earnings. Our ability to grow the business by over $21 billion in fiscal 2020 is a testament to both the investments we have made in the business as well as our associates' unwavering commitment to our customers," Craig Menear, chairman and CEO, said in the release.

Looking forward, Home Depot said it is limited in the ability to forecast demand for fiscal 2021.

"We were pleased with our record financial performance in fiscal 2020. As we look ahead to fiscal 2021, while we are not able to predict how consumer spending will evolve if the demand environment during the back half of fiscal 2020 were to persist through fiscal 2021, it would imply flat to slightly positive comparable sales growth and operating margin of at least 14%," Richard McPhail, executive vice president and CFO, said in the release.