The Home Depot’s U.S. same-store sales rose 7.6% in the fourth quarter.
The Home Depot reported another strong quarter and forecast continued sales growth in its new fiscal year.
Net income increased to $3.35 billion, or $3.21 per share, in the quarter ended Jan. 30, from $2.86 billion, or$2.65 a share, in the year-ago period. Analysts had expected earnings per share of $3.18.
Sales rose 10.7% to $35.72 billion, topping estimates of $34.88 billion. Same-store sales in the U.S. rose 7.6%. Although transactions fell, the average ticket rose to $85.11, fueled by inflation. Sales per retail square foot increased to $571.79 from $528.01 in the year-ago period.
For the full year, sales rose 14.4% to $151.2 billion. Net earnings were $16.4 billion, or $15.53 per share, compared with net earnings of $12.9 billion, or $11.94 per share in fiscal 2020.
In a statement, chairman and CEO Craig Menear called fiscal 2021 another record year for the Home Depot, noting that the chain achieved a milestone of more than $150 billion in sales. Menear is set to step down as CEO on March 1, and will be succeeded by company veteran and COO Edward “Ted” Decker. He will continue to serve as chairman.
“Our ability to grow the business by over $40 billion in the last two years is a testament to investments we have made in the business, our ability to execute with agility, and our associates' relentless focus on our customers,” Menear stated.
For fiscal 2022, the company expects sales and same-store sales to be "slightly positive" and earnings per sales growth in the low single-digit percentage range.
Separately, the retailer raised its quarterly dividend to $1.90 a share from $1.65, with the new dividend payable March 24 to shareholders of record on March 10.
At the end of the fourth quarter, Home Depot operated a total of 2,317 stores in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico, including 14 stores in the U.S. from a small acquisition completed during the second quarter of fiscal 2021.