The Home Depot^® reported sales of $43.2 billion for the second quarter of fiscal 2024, an increase of 0.6% from the second quarter of fiscal 2023. Total revenue includes $1.3 billion from the recent acquisition of SRS Distribution Inc. (SRS), which represents approximately six weeks of sales in the quarter. Second quarter fiscal 2024 comparable sales decreased 3.3%, and U.S. comparable sales decreased 3.6%.

Operating income for the second quarter of fiscal 2024 was $6.5 billion and operating margin was 15.1%, compared to operating income of $6.6 billion and operating margin of 15.4% for the second quarter of fiscal 2023.

“The underlying long-term fundamentals supporting demand for home improvement projects are strong,” said Ted Decker, Chairman, President and CEO. “During the quarter, higher interest rates and greater macroeconomic uncertainty put pressure on consumer demand generally, resulting in lower spending on home improvement projects.”

Forecast for the 2024 financial year

The Company has updated its fiscal year 2024 guidance, which includes 53 weeks of operating results, to reflect performance in the first half of fiscal year 2024 and to include SRS. The Company expects total revenue to increase between 2.5% and 3.5%, including the 53rd week. It also expects SRS to contribute approximately $6.4 billion in incremental revenue. Home Depot forecasts gross margin for the fiscal year of approximately 33.5%, compared to its original forecast of 33.9%. The Company’s gross margin for Financial year 2023 was 33.4%.

Home Depot expects comparable sales for the 52-week period to decline 3% to 4% compared to fiscal 2023 as consumer demand is expected to remain weak.

Home Depot says it plans to open 12 new stores by the end of the fiscal year. At the end of the second quarter, the company operated a total of 2,340 retail stores and over 760 branches in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico.