Home Depot Posts 6th Straight Quarter of Comp Sales Decline - Modern Distribution Management

Home Depot Posts 6th Straight Quarter of Comp Sales Decline

CEO Ted Decker noted a weather-delayed start to spring and continued softness in certain larger discretionary projects. 
Home Depot

Do-it-yourself and contractor supplies retailer The Home Depot reported its 2024 first quarter financial results on May 14, showing continued overall sales declines ahead of its busiest season.

The company posted total 1Q sales of $36.4 billion, down 2.3% year-over-year, with comparable sales down 2.8% (-3.2% in U.S.). 

In Home Depot’s financial release, CEO Ted Decker noted a weather-delayed start to spring and continued softness in certain larger discretionary projects impacting the quarter’s results. 

It was Home Depot’s sixth straight quarter of comparable sales decline.

Home Depot’s 1Q gross margin of 34.1% fell 40 basis points year-over-year; operating profit of $5.08 billion (14.1% margin) was down 8.5% and net profit of $3.6 billion was down 7.0%.

Sales at stores open at least one year — considered a key barometer of a retailer’s health — fell 2.8% globally and 3.2% in the U.S.

Average customer tickets also dipped during the quarter, with average transactions of $90.68 down from $91.92 a year earlier. Sales per retail square foot fell 3.4%.

Home Depot opened approximately 12 new stores during 1Q.

Of course, the company ended the quarter by announcing a pending landmark acquisition of building products distributor SRS Distribution in a deal valued at $18.25 billion. Announced March 28, that transaction is expected to close by the end of the year.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!