The Home Depot, the world's largest home improvement retailer, reported stronger-than-expected fourth-quarter results, with sales increasing 14.1% to $39.7 billion compared to the same period last year. The company also announced a 2.2% increase in its quarterly dividend.

The Atlanta-based retailer posted net earnings of $3.0 billion, or $3.02 per diluted share, compared with $2.8 billion, or $2.82 per diluted share, in the fourth quarter of fiscal 2023. On an adjusted basis, earnings were $3.13 per share.

Home Depot's fourth quarter benefited from an extra week compared to the prior year, which added approximately $2.5 billion in sales and $0.30 to earnings per share. Comparable sales for the quarter, which exclude the extra week, increased by a modest 0.8%, with U.S. stores showing slightly stronger performance at 1.3%.

"Our fourth quarter results exceeded our expectations as we saw greater engagement in home improvement spend, despite ongoing pressure on large remodeling projects," said Ted Decker, chair, president and CEO, in a statement.

For the full 2024 fiscal year, sales increased 4.5% to $159.5 billion, though comparable sales decreased 1.8%. Annual net earnings were $14.8 billion, or $14.91 per diluted share, down slightly from $15.1 billion, or $15.11 per diluted share in fiscal 2023.

Looking ahead to fiscal 2025, Home Depot offered a cautious outlook, projecting total sales growth of approximately 2.8% and comparable sales growth of about 1.0%. The company expects diluted earnings per share to decline approximately 3% from fiscal 2024.

The increased quarterly dividend of $2.30 per share will be payable on March 27, 2025, marking the company's 152nd consecutive quarter paying a cash dividend.

Home Depot operated 2,347 retail stores and over 780 branches at the end of the fourth quarter, employing more than 470,000 associates across its operations in the United States, Canada, and Mexico.