ATLANTA, May 14, 2024
/CNW/ -- The Home Depot®, the world's largest home
improvement retailer, today reported sales of $36.4 billion for the first quarter of fiscal
2024, a decrease of 2.3% from the first quarter of fiscal 2023.
Comparable sales for the first quarter of fiscal 2024 decreased
2.8%, and comparable sales in the U.S. decreased 3.2%.
Net earnings for the first quarter of fiscal 2024 were
$3.6 billion, or $3.63 per diluted share, compared with net
earnings of $3.9 billion, or
$3.82 per diluted share, in the same
period of fiscal 2023.
"The team executed at a high level in the quarter, and we
continued to grow market share," said Ted
Decker, chair, president and CEO. "And while the quarter was
impacted by a delayed start to spring and continued softness in
certain larger discretionary projects, we feel great about our
store readiness, our product assortment in stores and online, and
our associate engagement. Our associates are energized and
ready to serve our customers as spring breaks across the country. I
would like to thank them for their continued hard work and
dedication to serving our customers and communities."
Fiscal 2024 Guidance
The company reaffirms its fiscal 2024 guidance, which includes
53 weeks of operating results. In addition, in March, the Company
entered into a definitive agreement to acquire SRS Distribution
Inc. (SRS). Since the acquisition has not closed, the following
guidance does not reflect any impacts from the SRS
acquisition:
- Total sales growth of approximately 1.0%, including the
53rd week
- 53rd week projected to add approximately
$2.3 billion to total sales
- Comparable sales to decline approximately 1.0% for the 52-week
period
- Approximately 12 new stores
- Gross margin of approximately 33.9%
- Operating margin of approximately 14.1%
- Tax rate of approximately 24.5%
- Net interest expense of approximately $1.8 billion
- 53-week diluted earnings-per-share-percent growth of
approximately 1.0%
- 53rd week expected to contribute approximately
$0.30 of diluted earnings per
share
The Home Depot will conduct a conference call today at
9 a.m. ET to discuss information
included in this news release and related matters. The conference
call will be available in its entirety through a webcast and replay
at ir.homedepot.com/events-and-presentations.
At the end of the first quarter, the company operated a total of
2,337 retail stores in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs approximately
465,000 associates. The Home Depot's stock is traded on the New
York Stock Exchange (NYSE: HD) and is included in the Dow Jones
industrial average and Standard & Poor's 500 index.
Certain statements contained herein constitute
"forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements may
relate to, among other things, the demand for our products and
services, including as a result of macroeconomic conditions; net
sales growth; comparable sales; the effects of competition; our
brand and reputation; implementation of interconnected retail,
store, supply chain and technology initiatives; inventory and
in-stock positions; the state of the economy; the state of the
housing and home improvement markets; the state of the credit
markets, including mortgages, home equity loans, and consumer
credit; the impact of tariffs; issues related to the payment
methods we accept; demand for credit offerings; management of
relationships with our associates, potential associates, suppliers
and service providers; cost and availability of labor; costs of
fuel and other energy sources; events that could disrupt our
business, supply chain, technology infrastructure, or demand for
our products and services, such as international trade disputes,
natural disasters, climate change, public health issues,
cybersecurity events, geopolitical conflicts, military conflicts,
or acts of war; our ability to maintain a safe and secure store
environment; our ability to address expectations regarding
environmental, social and governance matters and meet related
goals; continuation or suspension of share repurchases; net
earnings performance; earnings per share; future dividends; capital
allocation and expenditures; liquidity; return on invested capital;
expense leverage; changes in interest rates; changes in foreign
currency exchange rates; commodity or other price inflation and
deflation; our ability to issue debt on terms and at rates
acceptable to us; the impact and expected outcome of
investigations, inquiries, claims, and litigation, including
compliance with related settlements; the challenges of operating in
international markets; the adequacy of insurance coverage; the
effect of accounting charges; the effect of adopting certain
accounting standards; the impact of legal and regulatory changes,
including changes to tax laws and regulations; store openings and
closures; guidance for fiscal 2024 and beyond; financial outlook;
the successful closing of the SRS acquisition; and the impact of
acquired companies on our organization and the ability to recognize
the anticipated benefits of any acquisitions.
Forward-looking statements are based on currently available
information and our current assumptions, expectations and
projections about future events. You should not rely on our
forward-looking statements. These statements are not guarantees of
future performance and are subject to future events, risks and
uncertainties – many of which are beyond our control, dependent on
the actions of third parties, or currently unknown to us – as well
as potentially inaccurate assumptions that could cause actual
results to differ materially from our historical experience and our
expectations and projections. These risks and uncertainties
include, but are not limited to, those described in Part I, Item
1A, "Risk Factors," and elsewhere in our Annual Report on Form 10-K
for our fiscal year ended January 28,
2024 and also as may be described from time to time in
future reports we file with the Securities and Exchange Commission.
There also may be other factors that we cannot anticipate or that
are not described herein, generally because we do not currently
perceive them to be material. Such factors could cause results to
differ materially from our expectations. Forward-looking statements
speak only as of the date they are made, and we do not undertake to
update these statements other than as required by law. You are
advised, however, to review any further disclosures we make on
related subjects in our filings with the Securities and Exchange
Commission and in our other public statements.
THE HOME DEPOT,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
in millions,
except per share data
|
April 28,
2024
|
|
April 30,
2023
|
|
% Change
|
Net sales
|
$
36,418
|
|
$
37,257
|
|
(2.3) %
|
Cost of
sales
|
23,985
|
|
24,700
|
|
(2.9)
|
Gross
profit
|
12,433
|
|
12,557
|
|
(1.0)
|
Operating
expenses:
|
|
|
|
|
|
Selling, general and
administrative
|
6,667
|
|
6,355
|
|
4.9
|
Depreciation and
amortization
|
687
|
|
651
|
|
5.5
|
Total operating
expenses
|
7,354
|
|
7,006
|
|
5.0
|
Operating
income
|
5,079
|
|
5,551
|
|
(8.5)
|
Interest and other
(income) expense:
|
|
|
|
|
|
Interest income and
other, net
|
(57)
|
|
(33)
|
|
72.7
|
Interest
expense
|
485
|
|
474
|
|
2.3
|
Interest and other,
net
|
428
|
|
441
|
|
(2.9)
|
Earnings before
provision for income taxes
|
4,651
|
|
5,110
|
|
(9.0)
|
Provision for income
taxes
|
1,051
|
|
1,237
|
|
(15.0)
|
Net earnings
|
$
3,600
|
|
$
3,873
|
|
(7.0) %
|
|
|
|
|
|
|
Basic weighted average
common shares
|
989
|
|
1,010
|
|
(2.1) %
|
Basic earnings per
share
|
$
3.64
|
|
$
3.83
|
|
(5.0)
|
|
|
|
|
|
|
Diluted weighted
average common shares
|
992
|
|
1,013
|
|
(2.1) %
|
Diluted earnings per
share
|
$
3.63
|
|
$
3.82
|
|
(5.0)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Selected Sales
Data (1)
|
April 28,
2024
|
|
April 30,
2023
|
|
% Change
|
Customer transactions
(in millions)
|
386.8
|
|
390.9
|
|
(1.0) %
|
Average
ticket
|
$
90.68
|
|
$
91.92
|
|
(1.3)
|
Sales per retail square
foot
|
$
572.69
|
|
$
592.94
|
|
(3.4)
|
|
|
|
|
|
|
|
|
(1)
Selected Sales Data does not include results for HD
Supply.
|
|
THE HOME DEPOT,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
in
millions
|
April 28,
2024
|
|
April 30,
2023
|
|
January 28,
2024
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
4,264
|
|
$
1,260
|
|
$
3,760
|
Receivables,
net
|
4,105
|
|
4,213
|
|
3,328
|
Merchandise
inventories
|
22,416
|
|
25,371
|
|
20,976
|
Other current
assets
|
1,837
|
|
1,579
|
|
1,711
|
Total current
assets
|
32,622
|
|
32,423
|
|
29,775
|
Net property and
equipment
|
25,997
|
|
25,674
|
|
26,154
|
Operating lease
right-of-use assets
|
7,913
|
|
6,931
|
|
7,884
|
Goodwill
|
8,464
|
|
7,447
|
|
8,455
|
Other assets
|
4,234
|
|
3,911
|
|
4,262
|
Total
assets
|
$
79,230
|
|
$
76,386
|
|
$
76,530
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
debt
|
$
8
|
|
$
—
|
|
$
—
|
Accounts
payable
|
12,563
|
|
12,630
|
|
10,037
|
Accrued salaries and
related expenses
|
2,005
|
|
1,931
|
|
2,096
|
Current installments
of long-term debt
|
763
|
|
1,338
|
|
1,368
|
Current operating
lease liabilities
|
1,073
|
|
966
|
|
1,050
|
Other current
liabilities
|
7,947
|
|
8,581
|
|
7,464
|
Total current
liabilities
|
24,359
|
|
25,446
|
|
22,015
|
Long-term debt,
excluding current installments
|
42,060
|
|
40,915
|
|
42,743
|
Long-term operating
lease liabilities
|
7,107
|
|
6,209
|
|
7,082
|
Other long-term
liabilities
|
3,884
|
|
3,454
|
|
3,646
|
Total
liabilities
|
77,410
|
|
76,024
|
|
75,486
|
Total stockholders'
equity
|
1,820
|
|
362
|
|
1,044
|
Total liabilities and
stockholders' equity
|
$
79,230
|
|
$
76,386
|
|
$
76,530
|
THE HOME DEPOT,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Three Months
Ended
|
in
millions
|
April 28,
2024
|
|
April 30,
2023
|
Cash Flows from
Operating Activities:
|
|
|
|
Net earnings
|
$
3,600
|
|
$
3,873
|
Reconciliation of net
earnings to net cash provided by operating activities:
|
|
|
|
Depreciation and
amortization
|
837
|
|
793
|
Stock-based
compensation expense
|
124
|
|
124
|
Changes in working
capital
|
842
|
|
809
|
Changes in deferred
income taxes
|
83
|
|
(59)
|
Other operating
activities
|
11
|
|
74
|
Net cash provided by
operating activities
|
5,497
|
|
5,614
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital
expenditures
|
(847)
|
|
(905)
|
Other investing
activities
|
17
|
|
2
|
Net cash used in
investing activities
|
(830)
|
|
(903)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Proceeds from
short-term debt, net
|
8
|
|
—
|
Repayments of long-term
debt
|
(1,172)
|
|
(1,063)
|
Repurchases of common
stock
|
(649)
|
|
(2,887)
|
Proceeds from sales of
common stock
|
62
|
|
15
|
Cash
dividends
|
(2,229)
|
|
(2,118)
|
Other financing
activities
|
(166)
|
|
(135)
|
Net cash used in
financing activities
|
(4,146)
|
|
(6,188)
|
Change in cash and cash
equivalents
|
521
|
|
(1,477)
|
Effect of exchange rate
changes on cash and cash equivalents
|
(17)
|
|
(20)
|
Cash and cash
equivalents at beginning of period
|
3,760
|
|
2,757
|
Cash and cash
equivalents at end of period
|
$
4,264
|
|
$
1,260
|
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SOURCE The Home Depot