Home Depot (NYSE: HD) reported positive fourth-quarter earnings on Tuesday, beating investor expectations as consumers continued to spend on home renovations. However shares fell 6% in early morning trading as the company failed to provide a yearly forecast within its earnings report.
“As we look ahead to FY21, while we are not able to predict how consumer spending will evolve, if the demand environment during the back half of FY20 were to persist through FY21, it would imply flat to slightly positive comparable sales growth and operating margin of at least 14%,” states CFO Richard McPhail.
Same-store sales within the U.S. also increased by 25%. Furthermore, same-store sales experienced a 24.5% growth, surpassing analysts estimated growth of 19.2%.
People spent more money while shopping in-store. According to the company, the average purchase increased by about 11% to USD75.69.
“Our ability to grow the business by over $21 billion in fiscal 2020 is a testament to both the investments we have made in the business as well as our associates’ unwavering commitment to our customers,” said Craig Menear, chairman and CEO. “We continue to lean into these investments because we believe they are critical in enabling market share growth in any economic environment.”