Home Depot Expects Growth To Slow Down

The fourth quarter topped off a phenomenal year for home improvement giant Home Depot (NYSE: HD), with high growth all around as well as a significant dividend increase. The past two years have been out of character for the U.S. retailer, and going forward, it's anticipating slowing growth. But that shouldn't bother investors because the solid-value stock still has a lot to offer.

Home Depot's customers have been on a shopping spree for most of the pandemic. Lockdowns and social distancing orders were a tailwind for the company as people, with limited spending outlets and activities, focused on home remodeling. This has already slowed down as the world has mostly reopened and people are out and spending in other areas.

Still, Home Depot was able to tack on another 10.7% year-over-year sales increase in the fourth quarter on top of 25% last year. Comparable sales, or sales from existing stores, increased 8.1% in total and 7.6% in the U.S. while net income rose from $2.9 billion last year to $3.4 billion this year.

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Source Fool.com