It should also be noted that the retailer’s digital sales increased by approximately 86% with customers picking up 62% of those orders in-store for the year. In addition, Home Depot generated $12.8 billion of net income in 2020, compared to $11.2 billion in the prior-year period. However, the company’s operating income grew 15% y-o-y during this period.

Despite revenues growing substantially, the company’s operating margin of 13.8% in 2020 came in lower than the previous year’s 14.4%, due to higher safety, labor, and supply chain costs related to Covid-19. Home Depot’s Q1 2021 earnings per share is expected to be $3.10 per Trefis analysis, 2% higher than the consensus estimate of $3.03. In addition, as a consequence of the pandemic, more people are deciding that owning a home is a better bargain than renting an apartment - which means more business for home improvement retailers. That said, the increase in remote working may be longer-lasting, which will allow the company to serve those customers looking to build and maintain a home office beyond the pandemic. Particularly, the company saw a 10.5% increase in comparable average tickets and an 8.6% increase in comparable customer transactions during 2020, and we expect this trend to continue in fiscal Q1 as well. This compares to sales growth of only 3.5% in fiscal 2019.

In addition, the company also reported a strong comparable sales growth of 19.7% in fiscal 2020. Home Depot saw record sales growth in 2020 as it added over $21 billion year-over-year to its sales base and booked soaring profits through the year. Trefis estimates Home Depot’s Q1 2021 revenues to be around $34.7 Bil, almost in line with the consensus estimate of $34.6 Bil. Look at our interactive dashboard analysis on Home Depot’s Pre-Earnings: What To Expect in Q1? for more details. Our forecast indicates that Home Depot’s valuation is $333 a share, which is slightly higher than the current market price of around $325. Certainly, sales will not continue to grow at 20+% levels as seen in 2020, but the company will likely continue to benefit from its ongoing One Home Depot HD strategy and the acquisition of HD Supply HDS going forward. In fact, these capabilities could bring in customers even after the pandemic has run its course. The home improvement retailer has invested quickly and heavily to build out its digital capabilities to accommodate this demand surge during the pandemic. The home improvement leader has seen revenue and net income grow by double digits as millions of homeowners have found themselves spending substantially more time in their homes in 2020. We expect the company’s revenues to likely be in-line while earnings beat consensus estimates.

Home Depot (NYSE: HD) is scheduled to report its fiscal first-quarter results on Tuesday, May 18. (Photo by Ron Adar/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images

Home Depot (HD) the home improvement retailer said it will offer Black Friday discounts for two months, beginning in early November through December. NEW YORK, UNITED STATES - 3: The Home Depot logo and store seen in Queens Borough of New.

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