The Home Depot, the world’s largest home furnishings retailer, reported financial results for the first quarter of 2024. The company generated total sales of $36.4 billion. This is a decrease of 2.3% in total sales compared to the same quarter of the previous year. Net profit for the first quarter of fiscal year 2024 was USD 3.6 billion, down 7.7%. At the end of the first quarter, the company operated a total of 2,337 retail stores in 50 states in the U.S., the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The company employs approximately 465,000 associates.
Despite the decline in quarterly sales, the company presents its fiscal 2024 outlook, which includes 53 weeks of operating results. In addition, in March, the company entered into an agreement to acquire SRS Distribution Inc (SRS), which it had already purchased for $18.25 billion. The move by Home Depot expanded the company’s addressable market by $50 billion. This acquisition of SRS gave Home Depot a stronger presence with its premium customers, a category in which competitor Lowe’s had an advantage. Home Depot CEO Ted Decker said: “SRS is an industry leader with a productive history across all DIY sectors.” The acquisition of SRS brings Home Depot assets including more than 7,000 professional tribal salespeople with more than 760 locations and a company fleet of 4,000 vehicles.
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The Home Depot, Inc (NYSE-HD) also pays a regular, quarterly dividend to its shareholders. The dividend yield is currently 2.73% per annum and the actual dividend amount has been approved by the company’s board of directors at $2.25 per share. The Home Depot’s stock has become very popular with multinational investment companies and private investors, and brokerage analysts believe that the share price can be expected to rise in the short to medium term investment horizon. The average target price has been set at $382.13 per share.