The home improvement sector wrapped up 2024 with mixed financial results, as retailers navigated shifting consumer behaviors, inflationary pressures, and ongoing investments in digital and professional contractor markets. While some companies saw revenue growth, comparable store sales showed varying trends, highlighting differences in customer spending patterns across the industry.
This Hardware Connection roundup looks at Q4 financial results for Home Depot, Lowe’s, Ace Hardware, and Tractor Supply, breaking down their performance and offering insights for independent hardware retailers looking to adapt to market trends.
Big-Box Retailers: Home Depot and Lowe’s Face Mixed Sales Trends
Home Depot reported $39.7 billion in Q4 revenue, a 14.1 percent increase over the same period in 2023. However, much of this growth was driven by an extra (14th) week in the quarter, contributing approximately $2.5 billion to total sales. Without that additional week, Home Depot’s comparable sales growth was modest at 0.8 percent, with U.S. comps up 1.3 percent. Full-year sales for 2024 totaled $159.5 billion, up 4.5 percent, but U.S. comparable sales declined 1.8 percent.
Lowe’s posted $18.6 billion in Q4 revenue, with comparable sales up just 0.2 percent. This modest increase was primarily driven by high-single-digit growth in pro and online sales, as well as rebuilding efforts following hurricanes. However, discretionary spending in the DIY segment remained weak, weighing down overall growth. Lowe’s full-year sales totaled $83.5 billion to $84.5 billion, with flat to 1 percent expected growth in 2025.
Both companies emphasized the professional contractor market and digital expansion as growth areas. Home Depot continues to outpace Lowe’s in pro market share, while Lowe’s is emphasizing online sales and its Total Home strategy, which integrates services and home installation offerings.
Ace Hardware: Strong Growth and Record Dividends
Ace Hardware closed 2024 with record-setting financials, reporting Q4 revenue of $2.3 billion, a 7.6 percent increase over the prior year. Full-year revenue reached $9.5 billion, up 3.9 percent, driven by strong performance in outdoor power equipment, grilling, and generators.
Ace saw a 1.6 percent increase in same-store sales for Q4, led by a 1.9 percent rise in average ticket size, though transaction volume declined 0.3 percent. The company continued its expansion, adding 215 new stores in 2024, bringing its total domestic store count to 5,144. Ace also distributed a record $357 million in patronage dividends to its shareholders, reinforcing its cooperative strength.
Ace President and CEO John Venhuizen credited the company’s success to strategic store expansion and digital growth, saying, “Strong comparable store sales during the fourth quarter from our hardware format stores, accelerated new store growth, and our continued digital advance fueled a very encouraging 7.6 percent increase in revenue for the quarter.”
Tractor Supply: Steady Growth with Rural Focus
Tractor Supply reported Q4 sales of $3.77 billion, a 3.1 percent increase, with comparable store sales up 0.6 percent. Unlike other retailers, Tractor Supply saw a 2.3 percent increase in average transaction count, though average ticket size declined 1.7 percent, suggesting some price sensitivity among its rural customer base.
For the full year, Tractor Supply generated $14.88 billion in revenue, a 2.2 percent increase over 2023, with comparable store sales up 0.2 percent. The retailer continues expanding aggressively, opening 80 new Tractor Supply stores and 11 Petsense locations in 2024.
CEO Hal Lawton pointed to investments in the Life Out Here strategy, a long-term initiative aimed at expanding Tractor Supply’s market share.
“Our existing initiatives are creating value and have continued runway for growth. We expect our 2025 comparable store sales to improve throughout the year as the macro headwinds impacting our business abate,” he said.
Tractor Supply has also been expanding its pet-related business, acquiring Allivet, an online pet pharmacy, to strengthen its position in the high-growth pet care segment.
Market Takeaways for Independent Hardware Retailers
Across all major home improvement retailers, a few trends and shifts emerge that independent hardware stores should take note of:
- High-ticket categories remain strong. Outdoor power equipment, generators, and grilling continue to be top-performing categories. Retailers should consider stocking premium options and offering financing or promotions to support larger purchases.
- Professional customer focus is intensifying. Home Depot and Lowe’s are doubling down on pro customers, meaning independent stores need to highlight their personalized service, specialized inventory, and flexibility to remain competitive.
- E-commerce continues to grow. Lowe’s and Home Depot are seeing strong digital sales, and Tractor Supply crossed $1 billion in online revenue. Retailers who aren’t leveraging digital sales channels risk losing market share to online competitors.
- Retailers are navigating shifting consumer behavior. Lowe’s and Ace saw rising average ticket sizes, while Tractor Supply’s ticket size declined. This suggests a mix of inflation-driven price increases and customers consolidating purchases. Understanding local market dynamics is key.
- Store expansion remains a priority. Ace, Tractor Supply, and Home Depot all expanded their footprints in 2024. Independent retailers should assess whether strategic growth opportunities exist in underserved markets.
