Home Depot expects a slowdown in the housing market recovery that has fueled the chain’s rebound from the recession.
“Home prices really spiked in 2013,” said Carol Tome, the home improvement giant’s chief financial officer. “We don’t expect prices to spike again this year, but there will be continued growth.”
The housing industry has been key to the Atlanta giant’s recovery. Sales to professionals in the building and construction industry equaled those to general consumer in the fourth quarter, the company said.
In December, the Atlanta home improvement giant said it expected 5 percent growth in 2014, but on Tuesday cut that number to 4.8 percent.
Overall sales grew 4.4 percent at stores opened at least a year in the 13 weeks of the fourth quarter 2013 compared to the same period a year ago, the company said on Tuesday.
Total sales, however, fell 3 percent to $17.7 billion in the fourth quarter of 2013 because the year prior contained an extra week of earnings — 14 compared to 13 — that added about $1.2 billion to sales.
Fourth quarter profit fell less than 1 percent to $1.013 billion. That compared to $1.021 billion the year before.
Tome said Web sales for the year jumped from $1.7 billion in 2012 to $2.8 billion last year. The the company is trying to boost its business online, where it has almost twice the items it has in stores.
Home Depot also announced a 21 percent dividend increase to 47 cents a share, its fifth hike in as many years. The dividend is payable on March 27 to shareholders of record at the close of business on March 13, 2014.
