Folks put on protecting face masks outdoors Residence Depot within the Flatiron district as the town continues Part 4 of re-opening following restrictions imposed to gradual the unfold of coronavirus on August 8, 2020 in New York Metropolis.

Noam Galai | Getty Photos

Home Depot is ready to report its fiscal fourth-quarter earnings earlier than the bell Tuesday.

This is what Wall Road is anticipating, primarily based on Refinitiv’s consensus estimates:

  • Earnings per share: $2.62, anticipated
  • Income: $30.73 billion, anticipated

The retailer’s outcomes will point out whether or not pandemic developments and the true property market proceed to raise house enchancment gross sales. The corporate can be getting ready for spring, which is often its busiest season.

Through the pandemic, People have had a “nesting” mindset and their properties have served a variety of functions, from distant classroom and workplace to fitness center. Shoppers have taken up do-it-yourself projects and hired professionals for house renovations. Some have moved out of densely populated cities and bought houses in suburban or rural areas, as they search more room or make the most of low rates of interest.

At Residence Depot, that has boosted enterprise. Its U.S. same-store gross sales grew by about 25% within the second and third quarters, as customers visited the retailer’s shops and web site extra and spent more cash. Its digital gross sales rose 80% 12 months over 12 months within the third quarter, with clients choosing up most of these on-line orders at shops.

Analysts count on Residence Depot’s same-store gross sales will develop by 19.2% within the fourth quarter, a big acquire however slower charge than the height of the pandemic, in response to a StreetAccount survey.

Residence Depot has not supplied an outlook for the 12 months. It faces robust comparisons within the coming quarters due to the large numbers it put up in the course of the pandemic. It might need to work tougher for pockets share, too, as customers get Covid-19 vaccines and spend weekends out to dinner or on trip as an alternative of portray or doing restore tasks. Its gross sales could possibly be buoyed, nonetheless, by a rebound of house professionals’ companies, as customers really feel extra comfy inviting folks into their homes and pay for tasks they delay or could not deal with on their very own.

About 45% of Residence Depot’s gross sales come from professionals, reminiscent of plumbers, electricians and contractors, with the remainder coming from do-it-yourself clients. That is the next proportion from rival Lowe’s, which will get 20% to 25% of its gross sales from professionals. Residence Depot additionally counts bigger house professionals as purchasers.

Residence Depot may construct on that benefit with HD Provide. It acquired the former unit of the company and large industrial products distributor in November in a deal valued at $8 billion.

As of Monday’s shut, Residence Depot’s shares are up greater than 12% from a 12 months in the past. The corporate’s market worth is $296.98 billion.

This story is growing and will probably be up to date.


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