The Home Depot Inc. reported Feb. 20 that its online sales increased about 2% year over year in its fiscal fourth quarter ended Jan. 28.

Meanwhile, total Home Depot Q4 sales decreased 2.9% year over year to $34.8 billion. Comparable sales in the quarter decreased 3.5%; in the U.S. specifically, they decreased 4%. In addition, Home Depot net earnings for the quarter were $2.8 billion, a year-over-year drop from $3.4 billion.

For the full year, Home Depot sales decreased 3% to $152.7 billion. Overall comparable sales decreased 3.2%, and that figure is slightly higher in the U.S., where they decreased 3.5%. In turn, Home Depot net earnings for its fiscal 2023 decreased to $15.1 billion from $17.1 billion in its fiscal 2022. Part of the sales decrease comes from Home Depot investing $1.5 billion in three acquisitions.

Home Depot sales decreased 2.5% year over year in November and 8.5% in January. They increased 1.1% in December.

“After three years of exceptional growth for our business, 2023 was a year of moderation,” said Ted Decker, chair, president and CEO, in a Feb. 20 earnings call with investors. He added that Home Depot entered 2023 with more inventory “than we would’ve preferred.”

Home Depot is No. 4 in the Top 1000, Digital Commerce 360’s database of the largest online retailers in North America.

Home Depot online sales in Q4

In Q4, Home Depot fulfilled nearly half of its online sales through its physical stores, said William Bastek, executive vice president of merchandising. Home Depot did not attach a dollar figure to its online sales, nor did it specify the percentage of total sales that Home Depot’s online sales represent.

Ann-Marie Campbell, senior executive vice president, said Home Depot made “significant progress taking friction out” of its online order-management process. It has enhanced its systems to better allow Home Depot customers to modify orders and self-service online returns.

“In 2024, we will focus on building more robust capabilities to support an interconnected self-service returns process where customers will have the ability to start a return online and complete that return via mail or in-store,” Campbell said.

It opened 13 stores in its 2023 fiscal year — eight in the U.S. and five in Mexico — bringing the number of Home Depot stores to 2,335. Campbell also said Home Depot plans to open 80 new stores in the next five years, including 12 new stores in its fiscal 2024.

“When we invest in new assets and capabilities to better serve the complex Pro, this also improves our Pro experience in our stores,” Campbell said. “For example, more job site delivery orders fulfilled from our distribution centers means less congestion in our stores and less time dedicated to picking, packing and staging orders for delivery.”

The ability for Home Depot to fulfill larger orders through its distribution network means it will have more product in stock for Pros shopping in the retailer’s physical stores, she added.

Home Depot B2B and DIY sales

Q4 sales to Home Depot Pro and DIY customers were “relatively in line with one another,” Bastek said.

To boost sales to its professional customers, Home Depot acquired Construction Resources in December. Construction Resources is a distributor for design-oriented surfaces, appliances and architectural specialty products.

Home Depot is also working “on new order-management capabilities to better manage complex Pro orders,” Decker said. “For the complex Pro opportunity, this means that by the end of 2024, we will have 17 of our top Pro markets equipped with new fulfillment options, localized product assortment and expanded sales force and enhanced digital capabilities with trade credit and order management in pilot for development.”

Home Depot earnings

For its fiscal fourth quarter ended Jan. 28, 2024, Home Depot reported:

• Total sales declined 2.9% year over year to $34.8 billion.
• Home Depot online sales grew 2%.
• Comparable sales declined 3.5%. In the U.S., they decreased 4%.
• Net earnings were $2.8 billion.

For its fiscal year ended Jan. 28, 2024, Home Depot reported:

• Total sales declined 3% to $152.7 billion.
• Comparable sales decreased 3.2%. In the U.S., they declined 3.5%.
• Net earnings were $15.1 billion, down from $17.1 billion the previous year.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s comparison of Home Depot and Lowe’s online sales.

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