As Home Depot works to bring together its brick-and-mortar and digital efforts, the home improvement company came out ahead of Q4 earnings estimates. Its shares were higher by 3 percent in premarket trading on the news. The company supported its past forecast for the year and enhanced its dividend by 10 percent, CNBC reported.
Home Depot’s stock has been trading close to a record high, as it is supported by a housing market with rising home values and a formidable U.S. economy. However, the retailer has been facing pressure as it dedicates billions to integrating its eCommerce business and its physical stores. In 2017, the company announced its plans to invest roughly $11 billion over a three-year period in its “One Home Depot” program.
Home Depot reiterated its fiscal 2020 forecast on Tuesday (Feb. 25), targeting 3.5 percent to 4 percent in same-store sales growth as well as 3.5 percent to 4 percent of total sales growth. The retailer looks to open six new locations this year.
CEO Craig Menear said that fiscal 2019 was “marked by significant progress as we invest to transform ourselves into The Home Depot of the future.” He noted that the retailer has “more conviction than ever that our strategic initiatives are creating a value proposition that is unique to the marketplace and will extend our leadership position for years to come.”
Home Depot saw its net income arrive at $2.28 a share or $2.48 billion, up from $2.09 or $2.34 billion a year prior. Analysts had forecasted $2.10 a share.
Home Depot’s sales per square foot were $425.70, which was above $414.17 from a year prior. The retailer’s sales tend to often mirror the strength of the housing market and the economy as a whole. In January, home construction in the U.S. dropped less than forecasted, and permits arrived at an almost 13-year record.
In separate news, delivery service Roadie raised $37 million in a funding round that included Home Depot, per reports last year. The funding came after Roadie announced it had formed delivery partnerships with The Home Depot, Walmart and Delta Air Lines.