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Q4 financials

Big-Box Financials Released for Q2 2023

Several big-box retailers have released their financial data for the second quarter of 2023, reflecting downward trends in sales for some operations and a positive quarter for others. For a quarter-to-quarter comparison, see how these same retailers performed in Q1 of 2023 here.

The Home Depot

The Home Depot reported sales of $42.9 billion for the second quarter of fiscal 2023, a decrease of 2% from the second quarter of fiscal 2022. Comparable sales for the second quarter of fiscal 2023 decreased 2%.

Net earnings for the second quarter of fiscal 2023 were $4.7 billion, compared with net earnings of $5.2 billion in the same period of fiscal 2022.

“We were pleased with our performance in the second quarter,” says Ted Decker, chair, president and CEO. “While there was strength in categories associated with smaller projects, we did see continued pressure in certain big-ticket, discretionary categories. We remain very positive on the medium-to-long term outlook for home improvement and our ability to grow share in a large and fragmented market. Our associates did an outstanding job delivering value and service for our customers throughout the quarter, and I would like to thank them for their dedication and hard work.”


Lowe’s Cos. Inc. reported net earnings of $2.7 billion compared to $2.99 billion in the second quarter of 2022. Total sales for the quarter were $25 billion and comparable sales decreased 1.6%, with strong spring recovery and professional and online sales growth, partially offsetting lumber deflation and lower DIY discretionary demand.

“Our investments in our Total Home strategy continued to drive growth across pro and online this quarter. And we are excited by our recent launch of same-day delivery nationwide and the expansion of our rural merchandising framework to roughly 300 stores,” says Marvin R. Ellison, Lowe’s chairman, president and CEO. “Our ability to reduce expenses while improving customer service is the result of excellent execution by our team, and we remain confident in the mid- to long-term outlook for the home improvement industry. In recognition of the contributions of our front-line associates, we are awarding over $100 million in discretionary and profit-sharing bonuses to them this quarter. I would like to thank our front-line team for serving our customers and supporting our communities.”


With an operating income margin rate that was 3% higher than last year, Target Corp. reported a stronger-than-expected profit performance on softer-than-expected sales.

In the second quarter, comparable sales declined 5.4% and same-day services grew nearly 4%, led by a nearly 7% growth in drive-up sales.

Inventory at the end of Q2 was 17% lower than last year, reflecting a 25% reduction in discretionary categories, partially offset by inventory investments to support frequency categories, and strategic investments to support long-term market-share opportunities.

“Our second quarter financial results clearly demonstrate the agility of our team and the resilience of our business model, as we saw better-than-expected profitability in the face of softer-than-expected sales,” says Brian Cornell, chair and chief executive of Target Corp. “With the benefit of a much-leaner inventory position than a year ago, the team was able to quickly respond to rapidly changing top-line trends throughout the second quarter, while continuing to focus on the guest experience.”

“As we move into the fall, the team is gearing up for the biggest seasons of the year, with a focus on continuing to serve our guests with newness throughout our assortment,” Cornell says. “At the same time, we continue to take a cautious approach to planning our business, and have therefore adjusted our financial guidance in anticipation of continued near-term challenges on the top line. This approach, along with the long-term investments we’re making in our business and strategy, position us to deliver sustainable, profitable growth in the years ahead.”

Tractor Supply Co.

Tractor Supply Co. reported a net sales increase of 7.2% during the second quarter of 2023, up to $4.18 billion. Comparable store sales increased 2.5%, led by comparable transaction growth of 1.8%.

The company announced a new long-term goal of opening 3,000 stores in the U.S. and plans to increase annual new store openings to 90 per year. The company opened 17 new Tractor Supply stores and three new Petsense by Tractor Supply stores in the second quarter of 2023.

“As has been well documented, U.S. consumer spending on goods is moderating. Additionally, our business was further impacted by seasonal underperformance, particularly in June. Consequently, our second quarter results, while solid, were below our expectations. My thanks and appreciation go out to our 52,000 Tractor Supply Team Members. Through their efforts, we delivered record customer service scores and positive comparable transaction growth in the quarter. Given our first-half performance and our view that our customers will continue to be discerning in their spending for the remainder of the year, we are adjusting our full year outlook,” says Hal Lawton, president and chief executive officer of Tractor Supply.

Gross profit increased 9.3% to $1.51 billion from $1.39 billion in the prior year’s second quarter, and gross margin increased 69 basis points to 36.2% from 35.5% in the prior year’s second quarter.

“We believe we have a robust, distinct business model in an attractive market. We have achieved remarkable growth and market share gains over the last three plus years,” Lawton says. “We remain excited about the many vectors that exist for us to expand our competitive advantages and deliver attractive growth. Today, based on market insights, we are announcing an increase to our long-term store target to 3,000 organic sites. Additionally, we are announcing our intention to increase our annual new store openings to 90 beginning in 2025 with 2024 being a transition year. With significant share opportunity in a total addressable market of more than $180 billion, we have a long growth runway ahead of us as we continue to execute on our Life Out Here strategy.”


Walmart Inc. shared strong revenue and operating income growth of 5.7% and 6.7%, respectively. The company sees strength in its omnichannel model across segments with strong comp sales globally, including 6.4% for Walmart U.S.

Consolidated revenue for the company reached $161.6 billion, up 5.7%, or 5.4% in constant currency and consolidated gross margin rate was up 50 basis points on lapping elevated markdowns and supply chain costs, partially offset by ongoing mix pressure in grocery and health and wellness.

Consolidated operating expenses as a percentage of net sales grew 33 basis points, Walmart U.S. comp sales increased 6.4% and e-commerce was up 24%, led by pickup and delivery.

“We had another strong quarter,” says Walmart president and CEO Doug McMillon. “Around the world, our customers and members are prioritizing value and convenience. They’re shopping with us across channels and they’re driving e-commerce, which was up 24% globally. Food is a strength, but we’re also encouraged by our results in general merchandise versus our expectations when we started the quarter. Our associates helped deliver increases in transaction counts and units sold, and profit is growing faster than sales. We’re in good shape with inventory, and we like our position for the back half of the year.”


PPG reported financial results for the second quarter of 2023. The company saw a record quarterly net sales of $4.9 billion and organic sales growth of 4% over last year, led by higher selling prices. The company saw significant progress on margin recovery with segment margins up 330 basis points over Q2 2022. There is a strong year-to-date operating cash flow of $620 million, which is an increase of $750 million compared to last year.

“The PPG team delivered record sales and earnings in the second quarter driven by our diverse portfolio. While overall global industrial demand was lackluster, several of our technology-advantaged businesses and leading brands once again delivered strong growth,” says Tim Knavish, PPG president and chief executive officer. “Looking ahead, we anticipate that the global macroeconomic environment will remain generally consistent with the second quarter including continued tepid global industrial production, along with some incremental slowing in U.S. architectural residential repaint due to significantly lower existing home sales. In addition, our supply chain and raw material availability has returned to pre-pandemic levels, and in some instances there is excess supply. We remain highly focused on our enterprise growth strategy and partnering with our customers to deliver superior service and products with a focus on enhancing their productivity and sustainability. As a result, we expect to achieve more customer success in subsequent quarters. Lastly, PPG will mark its 140th anniversary in August, a strong testament to the dedication of PPG team members around the world who support our heritage of delivering value to our customers every day.”


Sherwin-Williams reported financial results for the second quarter of 2023, with consolidated net sales increasing 6.3% over the second quarter to a record $6.24 billion. Net sales from U.S. and Canada stores open for more than 12 calendar months increased 9.5% in the quarter.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) increased 31.4% for a total of $1.28 billion in Q2 and was 20.6% of net sales.

“Our team delivered very strong results in the second quarter, as sales exceeded expectations in all three segments,” says John G. Morikis, Sherwin-Williams chairman and chief executive officer. “My thanks goes to our 64,000 employees, who continue to execute on our strategy of providing unique and differentiated value, service and solutions for our customers. Gross margin improved sequentially and year-over-year to 46%, driven by strong sales volume in our Paint Stores Group as well as moderating raw material costs. We leveraged the strong sales growth to drive solid margin expansion across all our segments, while also investing in growth initiatives that will propel sustained future performance. In addition, we delivered strong double digit percentage growth in earnings per share and EBITDA. We generated strong cash flow and continued our disciplined approach to capital allocation, including returning $849 million to shareholders through dividends and share repurchases year to date.

“In our reportable segments, growth in our Paint Stores Group was led by double digit percentage growth in protective and marine, commercial and property maintenance. Residential repaint sales were up a high-single digit percentage. New residential sales were flat, as completions slowed as expected. Sales in our Consumer Brands Group increased by a low-single digit percentage in North America and a strong double digit percentage in Latin America and Europe.”

About Lindsey Thompson

Lindsey joined the NHPA staff in 2021 as an associate editor for Hardware Retailing magazine. A native of Ohio, Lindsey earned a B.S. in journalism and minors in business and sociology from Ohio University. She loves spending time with her husband, two kids, two cats and one dog, as well as doing DIY projects around the house, going to concerts, boating and cheering on the Cleveland Indians.

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