The Home Depot Inc. and Lowe’s Cos. Inc. both reported online sales results for their fiscal fourth quarters as consumers slowed home improvement spending.

Home Depot reported online sales increased 2% in its fiscal fourth quarter ended Jan. 28. Meanwhile, Lowe’s said comparable online sales remained flat year over year in its fiscal fourth quarter ended Feb. 2. Both retailers reported declines in overall sales for the quarter.

Home Depot ranks No. 4 in the Top 1000, Digital Commerce 360’s ranking of North America’s online retailers by web sales. Lowe’s ranks No. 12 in the Top 1000. Digital Commerce 360 categorizes both as Hardware & Home Improvement retailers.

Home Depot revenue and sales

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.

“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.”

Lowe’s revenue and sales

Total sales at Lowe’s declined 17% to $18.60 billion in the quarter, from $22.45 billion in Q4 2022.

Meanwhile, comparable sales declined 6.2% for the quarter due to slowing demand from do-it-yourself (DIY) customers and impact from winter weather, Lowe’s said. Net earnings for the quarter were $1.02 billion, an increase from $957 million in the year-ago period. 

“This quarter, we delivered strong operating profit and improved customer satisfaction, despite the continued pullback in DIY spending,” CEO Marvin Ellison said in a statement. “We remain confident in the long-term strength of the home improvement market, and we are making the right investments in our Total Home strategy to take share.”

Total sales declined 11% for the full year, to $86.38 billion from $97.06 billion in 2022. However, net earnings increased to $7.73 billion in 2023 from $6.44 billion in 2022.

Home Depot and Lowe’s improve online order fulfillment

Both home improvement retailers noted the ways they’re improving the online order fulfillment process.

Buy online, pick up in store (BOPIS) remains a focus for Lowe’s, Ellison said. The retailer continued its rollout of a redesigned front end of the store where customers pick up BOPIS items. In 2023, it completed 450 reconfigurations in stores, with more than 500 more planned for 2024.

The retailer also debuted Lowe’s Style Studio, the new app for the Apple Vision Pro that allows consumers to design and visualize changes to their kitchens. Lowe’s is among the retailers creating Vision Pro apps with planned omnichannel applications.

Meanwhile, in Q4, Home Depot fulfilled nearly half of its online sales through its physical stores, said William Bastek, executive vice president of merchandising.

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.

B2B and DIY sales

Home Depot said DIY sales to consumers and B2B sales to pros were relatively in line with each other in Q4. 

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.

At Lowe’s, B2B sales had better results than those to DIY customers in the quarter. 

“Macroeconomic factors like persistent inflation and a stagnant housing market continue to make DIY customers and consumers hesitant to spend on big-ticket purchases for their homes, and those who did engage in home improvement activities took on smaller, non-discretionary projects with a heightened focus on value,” Ellison said.

B2B sales at Lowe’s were flat year over year. Building materials were the best-performing category in the quarter, with positive comparable sales, Lowe’s said. Those sales grew primarily from a demand for roofing and drywall materials from B2B customers.

Lowe’s Pro customers are primarily small- to medium-sized business owners.

Lowe’s earnings

For its fiscal fourth quarter ended Feb. 2, 2024, Lowe’s reported:

• Total sales declined 17% year over year to $18.60 billion.
• Comparable sales declined 6.2%.
• Net earnings were $1.02 billion, an increase from $957 million in the year-ago period. 

For its fiscal year ended Feb. 2, 2024 Lowe’s reported:

• Total sales declined 11% to $86.38 billion.
• Net earnings increased to $7.73 billion from $6.44.

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. 

Abbas Haleem contributed to this story.

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