ATLANTA-Fueled by a strong sales increase, Home Depot’s fourth-quarter net income jumped 31.9 percent to $1 billion—bringing its bottom line for the year to $4.5 billion, up 16.8 percent from the prior fiscal year.
Net sales for the quarter, which ended on Feb. 3, totaled $18.2 billion, a gain of 13.9 percent and including a rise of 7 percent in same-store sales. For the fiscal year, net sales were $74.8 billion, up 6.2 percent and including a 4.6 percent increase in same-store sales. “We ended the year with a strong performance as our business benefited from a continued recovery in the housing market, coupled with sales related to repairs in the areas impacted by Hurricane Sandy,” said Frank Blake, Home Depot’s chairman and CEO.
Gross margin in the quarter slipped six basis points to 34.9 percent. Selling, general and administrative expenses were up 8.8 percent in dollars but dropped 110 basis points as a percentage of sales, to 23.1 percent.
For the new fiscal year, Home Depot is projecting total sales growth of about 2 percent, including a same-store sales gain of 3 percent.