The financial report of the leading retailer Home Depot reflects the consumer sentiment in the United States 零售龍頭家得寶的財報反應美國的消費景氣

The financial report of the leading retailer Home Depot reflects the consumer sentiment in the United States.
 
Home Depot Inc. (Moody’s A2 stable / S&P A stable / Fitch A stable), the world’s largest home improvement retailer, reported its third-quarter financial results, which showed a decline in revenue and earnings compared to the same period last year, due to lower customer spending on large-scale renovation projects and high-priced items. The main financial highlights are as follows:
 
·      Third-quarter revenue was $37.71 billion, down 3% year-over-year, but better than market expectations.
·      Third-quarter earnings were $3.81 billion, down 12% year-over-year, but better than market expectations.
·      Credit metrics weakened, with current interest coverage ratio (= operating profit / interest expense) at 11.1x, and leverage ratio (= net debt / operating profit) at 2.12x.
·      Free cash flow has been positive in the long term, and has generated more than $10 billion of free cash flow annually in the past five years. Free cash flow generated as of the third quarter this year was about $14.2 billion.
 
Home Depot has faced dual challenges over the past year: high housing prices and mortgage interest rates have squeezed the budgets of homebuyers for renovations, while high inflation has made selling large items and expensive home improvements more challenging. This aligns with the October CPI data released on the same day, which indicated that declining demand has mitigated inflationary pressures in a high-interest-rate environment.
 
Secondary market trading
·      HD 4.5% 2032 bond recently traded near 5.10%, which has decreased by 60bps since the end of October.
·      HD 4.95% 2052 bond recently traded near 5.57%, which has decreased by 57bps since the end of October.
 
零售龍頭家得寶的財報反應美國的消費景氣
 
全球最大的居家修繕用品零售業者家得寶公司(Moody‘s A2 穩定 / S&P A 穩定 / Fitch A 穩定)公布今年第三季財報,在客戶減少大型裝修工程以及高價商品採購的情況下,營收與獲利皆較去年同期衰退。主要財報數據摘要如下:
 
·      第三季營收377.1億美元,較去年同期下降3%,但優於市場預期。
·      第三季獲利38.1億美元,較去年同期下降12%,但優於市場預期。
·      信用指標弱化,目前利息保障倍數(=營業利潤 / 利息費用)為11.1倍,槓桿率(= 淨債務 / 營業利潤)為2.12倍。
·      自由現金流長期為正,且過去五年期間,每年皆創造達100億美元以上自由現金流。今年截至第三季已創造自由現金流約142億美元。
 
家得寶過去一年面臨著雙重挑戰:高房價與房貸利率壓縮了購屋者的裝潢預算,而高通膨亦使得大件物品和昂貴的裝修變得更難銷售。呼應了同一天公布的10月份CPI數據,在高利率環境下,需求下降使得通膨壓力趨緩。
 
次級市場交易狀況
·      家得寶(HD)4.5% 2032年券目前收益率約5.10%,10月底至今走低60bps
·      家得寶(HD)4.95% 2052年券目前收益率約5.57%,10月底至今走低57bps