3 Things to Look for in Home Depot Q4 2015 Earnings

On 25 Feb 2016, home improvement retailer Home Depot (NYSE:HD) is scheduled to release its Q4 2015 earnings. Average analyst estimates for Home Depot Q4 2015 earnings stands at $1.10 per share, representing a 10% YoY increase. Driven by a robust housing market, Home Depot shouldn’t have any problems beating these expectations. What should investors watch out for in the upcoming Home Depot Q4 2015 earnings release? Let’s take a look at some important items which will be watched by Home Depot Investors.

Robust Traffic & Sales

Home Depot exhibited no problem in bringing customers back through its doors and to its website in Q3 2015. Indications exist that consumers are still willing to invest and spend money on housing. After a dip in November, existing home sales increased 7.7% YoY in December, according to the National Association of Realtors. Moreover, new residential sales in November and December 2015 expanded 9% and 10% YoY, respectively, according to the United States Census Bureau.

Commentary on strategies

Investors should expect Home Depot CEO Craig Menear and his executives to discuss the retailing landscape as it pertains to home improvement and how Home Depot fits in that arena. When it comes to online shopping, Home Depot maintains the advantage of not having Amazon (NASDAQ: AMZN) as a primary competitor. Amazon’s core competency still focuses on general merchandise such as books, clothing and electronics.

Home Depot understands that more and more people want to shop online. According to Bloomberg, Home Depot responded by lowering its store base. It will focus instead on expanding transactions and sales at existing locations. Home Depot also wants to focus on using its e-commerce platform as a way of enticing customers to purchase products. The company could also use its existing infrastructure as a means of getting merchandise to the customer via in-store pickup or delivery. Home Depot can offer more products via its online conduit than it ever could in its brick and mortar locations.

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