Home Depot's Q2 Performance: Revenue Dip, New Stock Buyback And More

Home improvement retailer Home Depot Inc HD reported a second-quarter FY23 sales decline of 2% year-on-year to $42.92 billion, beating the analyst consensus of $42.25 billion.

Customer transactions for the quarter fell by 1.8%. Comparable sales decreased by 2%, and comparable sales in the U.S. dropped by 2%.

Gross profit declined 2.3% Y/Y to $14.2 billion. The operating margin was 15.3%, and operating income for the quarter fell 8.6% to $6.6 billion. Operating expenses increased 4.1% Y/Y to $7.6 billion.

EPS of $4.65 beat the analyst consensus of $4.46. The average ticket in Q2 was $90.07, a 0.1% growth, and sales per retail square foot declined 2.3% to $684.65.

The company held $2.8 billion in cash and equivalents as of July 30, 2023. Operating cash flow for six months totaled $12.2 billion, up from $7.2 billion in the prior year’s quarter.

Buyback: The board of directors also authorized a new $15 billion share repurchase program effective August 15, 2023, replacing its previous authorization.

“While there was strength in categories associated with smaller projects, we did see continued pressure in certain big-ticket, discretionary categories. We remain very positive on the medium-to-long term outlook for home improvement and our ability to grow share in a large and fragmented market,” said chair, president, and CEO Ted Decker.

FY23 Outlook, Reaffirmed: Home Depot sees sales and comparable sales decline of 2% - 5% (representing sales of $149.533 billion-$154.255 billion) vs. the $152.28 billion estimate. 

It forecasts an EPS decline of 7% - 13% versus last year (representing $14.52-$15.52) compared to analyst consensus of $14.96. 

It anticipates an operating margin of 14.3% - 14%.

Price Action: HD shares are trading lower by 0.62% at $327.92 in premarket on the last check Tuesday.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesLarge CapNewsGuidanceBuybacksMarketsGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!