The Home Depot released its fourth quarter accounts ahead of Wall Street’s opening.
For the quarter ended January 29, Home Depot reported sales of $35.83 billion, up 0.3% from the same period a year ago, which reported revenue of $35.72 billion.
The retailer’s reported net income of $3.36 billion was also 0.3% higher than the same period a year ago, which was $3.35 billion, or $3.21 per share.
Despite the backdrop of record levels of inflation, a shift in consumer behavior and a slowdown in the housing market, the home improvement retailer has repeatedly exceeded Street’s expectations over the past year but not guidance estimates.
The company attributed it solely to a decline in the cost of lumber, which had risen in price due to nationwide shortages in fiscal 2021. The decline in lumber negatively impacted comparable sales by 0.7%. the company said.
The company provided a weak outlook for 2023 and expects sales and comparable sales to be roughly flat.
Additionally, Home Depot expects an operating margin rate of approximately 14.5%, which is impacted by a $1 billion investment in wage growth.
Home Depot expects a one-half single-digit percentage decline in diluted earnings per share.
CFO Richard McPhail, said the company expects flat consumer spending in the coming quarters and some pressure in the goods sector, which is what has led to the guidance of flat outlooks.