On Tuesday, Home Depot Incorporated showed better-than-expected results in the fiscal third quarter following boosted demand.
Its stock price dwindled by -1.28% to $403.08 per piece on November 12’s Asian afternoon session. In addition, it is anticipated to fall by -0.14% to $402.50 a share in the after-hours trading.
The company’s earnings per share (EPS) lowered to $3.78, exceeding the analysts’ $3.64 outlook but falling behind the last $4.67 data.
Similarly, its revenue went down to $40.22 billion, surpassing the $39.27 billion forecast by experts, while dropping below the $43.18 billion in the previous quarter.
In line with this, the net income of Home Depot declined to $3.60 billion or $3.67 a piece for the quarter. This is a significant loss from the $3.80 billion or $3.81 per share in the same period last year.
Likewise, same-store sales dipped by 1.30%, while sales increased by 6.60% to $40.20 billion. Moreover, the customers of the retail corporation spent an average of $88.65 per transaction.
Based on reports, the results were underpinned by a boosted demand for hurricane-related repairs and better weather. The sales of seasonal goods also contributed to the third quarter profits.
According to Chief Executive Officer Ted Decker, Home Depot saw enhanced engagement and incremental sales despite macroeconomic uncertainty.
Shoplifting Continues to Challenge Home Depot
As revealed by reports, shoplifting cases continue to challenge Home Depot, along with organized retail crime.
After becoming an issue last year, the concern remains despite not making as many headlines in 2024.
Moreover, Chief Financial Officer Richard McPhail emphasized that shoplifting is a trouble for all of retail and it is difficult to quantify.
Home Depot continues to face organized retail theft with improved investments and measures. However, McPhail stressed that the problem is getting even harder.
Furthermore, Vice President of Asset Protection Scott Glenn stated that the home improvement company targets a balanced control of the situation.
