Posted 3/8/2024, 7:45:22 AM
Home Depot Sees Ongoing Sales Softness, Announces Acquisition to Bolster Offerings
- Home Depot reported -3.5% same-store sales growth in Q4 FY23, with declines in both customer transactions and average ticket size
- Weakness attributed to declining home furnishing sales, commodity deflation, and normalized promotional activity levels
- Projecting another weak year in FY24 with -1% same-store sales growth and 1% EPS growth
- Maintain 'Buy' rating with $400 fair value estimate based on high-quality business and reasonable valuation
- Announced acquisition of Construction Resources to enhance product offerings and expand Pro customer base