ATLANTA, Feb. 25,
2025 /PRNewswire/ -- The Home Depot®, the
world's largest home improvement retailer, today reported fourth
quarter and fiscal 2024 results.
Fourth Quarter 2024
Sales for the fourth quarter of fiscal 2024 were $39.7 billion, an increase of $4.9 billion, or 14.1% from the fourth quarter of
fiscal 2023. Comparable sales for the fourth quarter of fiscal 2024
increased 0.8%, and comparable sales in the U.S. increased
1.3%.
The fourth quarter of fiscal 2024 consisted of 14 weeks compared
with 13 weeks for the prior year. The 14th week added approximately
$2.5 billion in sales for the quarter
and the year. The additional week is not included in comparable
sales results for the quarter or the year.
Net earnings for the fourth quarter of fiscal 2024 were
$3.0 billion, or $3.02 per diluted share, compared with net
earnings of $2.8 billion, or
$2.82 per diluted share, in the same
period of fiscal 2023. The 14th week added approximately
$0.30 to diluted earnings per share
for the quarter and the year.
Adjusted(1) diluted earnings per share for the fourth
quarter of fiscal 2024 were $3.13,
compared with adjusted diluted earnings per share of $2.86 in the same period of fiscal 2023. The 14th
week added approximately $0.30 to
adjusted diluted earnings per share for the quarter and the
year.
Fiscal 2024
Sales for fiscal 2024 were $159.5
billion, an increase of $6.8
billion, or 4.5% from fiscal 2023. Comparable sales for
fiscal 2024 decreased 1.8%, and comparable sales in the U.S.
decreased 1.8%.
Net earnings for fiscal 2024 were $14.8
billion, or $14.91 per diluted
share, compared with net earnings of $15.1
billion, or $15.11 per diluted
share in fiscal 2023.
Adjusted(1) diluted earnings per share for fiscal
2024 were $15.24, compared with
adjusted diluted earnings per share of $15.25 in fiscal 2023.
"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.
"Throughout the year, we remained steadfast in our
investments across our strategic initiatives to position ourselves
for continued success, despite uncertain macroeconomic conditions
and a higher interest rate environment that impacted home
improvement demand. I would like to thank our associates for all
that they do to serve our customers and communities."
Dividend Declaration
The company today announced that its board of directors approved
a 2.2% increase in its quarterly dividend to $2.30 per share, which equates to an annual
dividend of $9.20 per share.
The dividend is payable on March 27,
2025, to shareholders of record on the close of business on
March 13, 2025. This is the
152nd consecutive quarter the company has paid a cash
dividend.
Fiscal 2025 Guidance
The company provides the
following guidance for fiscal 2025, a 52-week year compared to
fiscal 2024, a 53-week year:
- Total sales growth of approximately 2.8%
- Comparable sales growth of approximately 1.0% for the
comparable 52-week period
- Approximately 13 new stores
- Gross margin of approximately 33.4%
- Operating margin of approximately 13.0%
- Adjusted(1) operating margin of approximately
13.4%
- Tax rate of approximately 24.5%
- Net interest expense of approximately $2.2 billion
- Diluted earnings-per-share to decline approximately 3% from
$14.91 in fiscal 2024
- Adjusted(1) diluted earnings-per-share to decline
approximately 2% from $15.24 in
fiscal 2024
- Capital expenditures of approximately 2.5% of total sales
|
(1)
|
The Company reports its financial results in
accordance with U.S. generally accepted accounting principles
(GAAP). As used above and throughout this earnings release,
adjusted operating income, adjusted operating margin, and adjusted
diluted earnings per share are non-GAAP financial measures. Refer
to the end of this release for an explanation of these non-GAAP
financial measures and reconciliations to the most directly
comparable GAAP measures.
|
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 fourth quarter, the company operated a total
of 2,347 retail stores and over 780 branches across all 50 states,
the District of Columbia,
Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs over 470,000
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.
Cautionary Note Regarding Forward-Looking
Statements
Certain statements contained herein
constitute "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are based on currently available information and our
current assumptions, expectations and projections about future
events, and use words such as "may," "will," "could," "should,"
"would," "anticipate," "intend," "estimate," "project," "plan,"
"believe," "expect," "target," "prospects," "potential," "commit"
and "forecast," or words of similar import or meaning or refer to
future time periods. Forward-looking statements may relate to,
among other things, the demand for our products and services,
including as a result of macroeconomic conditions and changing
customer preferences and expectations; net sales growth; comparable
sales; the effects of competition; our brand and reputation;
implementation of interconnected retail, store, supply chain,
technology innovation and other strategic initiatives, including
with respect to real estate; 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 and trade credit; the impact of tariffs;
issues related to the payment methods we accept; demand for credit
offerings including trade credit; management of relationships with
our associates, jobseekers, 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, labor disputes,
geopolitical conflicts, military conflicts, or acts of war; our
ability to maintain a safe and secure store environment; our
ability to address expectations regarding sustainability and human
capital management 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 executive orders and other
administrative or legislative actions, such as changes to tax laws
and regulations; store openings and closures; guidance for fiscal
2025 and beyond; financial outlook; and the impact of acquired
companies, including SRS, on our organization and the ability to
recognize the anticipated benefits of any acquisitions.
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 described from time to time in reports
subsequently filed 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.
Non-GAAP Financial
Measures
These statements are also supplemented with
certain non-GAAP financial measures. When used in conjunction with
our GAAP financial measures, we believe these supplemental non-GAAP
financial measures will help management and investors to better
understand and analyze our performance. However, this supplemental
information should not be considered in isolation or as a
substitute for the related GAAP measures. Refer to the end of this
release for an explanation and definitions of these non-GAAP
financial measures and reconciliations to the most directly
comparable GAAP measures.
|
THE HOME DEPOT,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
|
|
|
Three Months Ended
(1)
|
|
|
|
Fiscal Year Ended
(2)
|
|
|
|
in millions,
except per share data
|
February 2,
2025
|
|
January 28,
2024
|
|
% Change
|
|
February 2,
2025
|
|
January 28,
2024
|
|
% Change
|
|
Net sales
|
$
39,704
|
|
$
34,786
|
|
14.1 %
|
|
$ 159,514
|
|
$ 152,669
|
|
4.5 %
|
|
Cost of
sales
|
26,670
|
|
23,278
|
|
14.6
|
|
106,206
|
|
101,709
|
|
4.4
|
|
Gross
profit
|
13,034
|
|
11,508
|
|
13.3
|
|
53,308
|
|
50,960
|
|
4.6
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
7,725
|
|
6,679
|
|
15.7
|
|
28,748
|
|
26,598
|
|
8.1
|
|
Depreciation and
amortization
|
814
|
|
686
|
|
18.7
|
|
3,034
|
|
2,673
|
|
13.5
|
|
Total
operating expenses
|
8,539
|
|
7,365
|
|
15.9
|
|
31,782
|
|
29,271
|
|
8.6
|
|
Operating
income
|
4,495
|
|
4,143
|
|
8.5
|
|
21,526
|
|
21,689
|
|
(0.8)
|
|
Interest and other
(income) expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income and
other, net
|
(30)
|
|
(55)
|
|
(45.5)
|
|
(201)
|
|
(178)
|
|
12.9
|
|
Interest
expense
|
638
|
|
513
|
|
24.4
|
|
2,321
|
|
1,943
|
|
19.5
|
|
Interest
and other, net
|
608
|
|
458
|
|
32.8
|
|
2,120
|
|
1,765
|
|
20.1
|
|
Earnings before
provision for income taxes
|
3,887
|
|
3,685
|
|
5.5
|
|
19,406
|
|
19,924
|
|
(2.6)
|
|
Provision for income
taxes
|
890
|
|
884
|
|
0.7
|
|
4,600
|
|
4,781
|
|
(3.8)
|
|
Net earnings
|
$ 2,997
|
|
$ 2,801
|
|
7.0 %
|
|
$
14,806
|
|
$
15,143
|
|
(2.2) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average
common shares
|
991
|
|
991
|
|
— %
|
|
990
|
|
999
|
|
(0.9) %
|
|
Basic earnings per
share
|
$ 3.02
|
|
$ 2.83
|
|
6.7
|
|
$ 14.96
|
|
$ 15.16
|
|
(1.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares
|
994
|
|
994
|
|
— %
|
|
993
|
|
1,002
|
|
(0.9) %
|
|
Diluted earnings per
share
|
$ 3.02
|
|
$ 2.82
|
|
7.1
|
|
$ 14.91
|
|
$ 15.11
|
|
(1.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
(1)
|
|
|
|
Fiscal Year Ended
(2)
|
|
|
|
Selected Sales
Data (3)
|
February 2,
2025
|
|
January 28,
2024
|
|
% Change
|
|
February 2,
2025
|
|
January 28,
2024
|
|
% Change
|
|
Customer transactions
(in millions)
|
400.4
|
|
372.0
|
|
7.6 %
|
|
1,637.2
|
|
1,621.8
|
|
0.9 %
|
|
Average
ticket
|
$ 89.11
|
|
$ 88.87
|
|
0.3
|
|
$ 89.31
|
|
$ 90.07
|
|
(0.8)
|
|
Sales per retail square
foot
|
$
556.90
|
|
$
550.50
|
|
1.2
|
|
$
599.92
|
|
$
604.55
|
|
(0.8)
|
|
—————
|
|
(1)
|
Three months ended
February 2, 2025 includes 14 weeks. Three months ended January
28, 2024 includes 13 weeks.
|
|
(2)
|
Fiscal year ended
February 2, 2025 includes 53 weeks. Fiscal year ended January 28,
2024 includes 52 weeks.
|
|
(3)
|
Selected Sales Data
does not include results for HD Supply or SRS.
|
|
THE HOME DEPOT,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
in
millions
|
February 2,
2025
|
|
January 28,
2024
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
1,659
|
|
$
3,760
|
|
Receivables,
net
|
4,903
|
|
3,328
|
|
Merchandise
inventories
|
23,451
|
|
20,976
|
|
Other current
assets
|
1,670
|
|
1,711
|
|
Total current
assets
|
31,683
|
|
29,775
|
|
Net property and
equipment
|
26,702
|
|
26,154
|
|
Operating lease
right-of-use assets
|
8,592
|
|
7,884
|
|
Goodwill
|
19,475
|
|
8,455
|
|
Intangible assets,
net
|
8,983
|
|
3,606
|
|
Other assets
|
684
|
|
656
|
|
Total
assets
|
$
96,119
|
|
$
76,530
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term
debt
|
$
316
|
|
$
—
|
|
Accounts
payable
|
11,938
|
|
10,037
|
|
Accrued salaries and
related expenses
|
2,315
|
|
2,096
|
|
Current installments
of long-term debt
|
4,582
|
|
1,368
|
|
Current operating
lease liabilities
|
1,274
|
|
1,050
|
|
Other current
liabilities
|
8,236
|
|
7,464
|
|
Total current
liabilities
|
28,661
|
|
22,015
|
|
Long-term debt,
excluding current installments
|
48,485
|
|
42,743
|
|
Long-term operating
lease liabilities
|
7,633
|
|
7,082
|
|
Other long-term
liabilities
|
4,700
|
|
3,646
|
|
Total
liabilities
|
89,479
|
|
75,486
|
|
Total stockholders'
equity
|
6,640
|
|
1,044
|
|
Total liabilities and
stockholders' equity
|
$
96,119
|
|
$
76,530
|
|
THE HOME DEPOT,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Fiscal Year Ended
(1)
|
|
in
millions
|
February 2,
2025
|
|
January 28,
2024
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net earnings
|
$
14,806
|
|
$
15,143
|
|
Reconciliation of net
earnings to net cash provided by operating activities:
|
|
|
|
|
Depreciation and
amortization, excluding amortization of intangible
assets
|
3,336
|
|
3,061
|
|
Intangible asset
amortization
|
425
|
|
186
|
|
Stock-based
compensation expense
|
442
|
|
380
|
|
Changes in working
capital
|
679
|
|
2,333
|
|
Changes in deferred
income taxes
|
15
|
|
(245)
|
|
Other operating
activities
|
107
|
|
314
|
|
Net cash
provided by operating activities
|
19,810
|
|
21,172
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Capital
expenditures
|
(3,485)
|
|
(3,226)
|
|
Payments for businesses
acquired, net
|
(17,644)
|
|
(1,514)
|
|
Other investing
activities
|
98
|
|
11
|
|
Net cash
used in investing activities
|
(21,031)
|
|
(4,729)
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Proceeds from
short-term debt, net
|
316
|
|
—
|
|
Proceeds from long-term
debt, net of discounts
|
10,010
|
|
1,995
|
|
Repayments of long-term
debt
|
(1,536)
|
|
(1,271)
|
|
Repurchases of common
stock
|
(649)
|
|
(7,951)
|
|
Proceeds from sales of
common stock
|
395
|
|
323
|
|
Cash
dividends
|
(8,929)
|
|
(8,383)
|
|
Other financing
activities
|
(301)
|
|
(156)
|
|
Net cash
used in financing activities
|
(694)
|
|
(15,443)
|
|
Change in cash and cash
equivalents
|
(1,915)
|
|
1,000
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
(186)
|
|
3
|
|
Cash and cash
equivalents at beginning of period
|
3,760
|
|
2,757
|
|
Cash and
cash equivalents at end of period
|
$
1,659
|
|
$
3,760
|
|
—————
|
|
(1)
|
Fiscal year ended
February 2, 2025 includes 53 weeks. Fiscal year ended January 28,
2024 includes 52 weeks.
|
NON-GAAP FINANCIAL MEASURES
Adjusted operating income, adjusted operating margin (calculated
as adjusted operating income divided by total net sales), and
adjusted diluted earnings per share are presented as supplemental
financial measures in the evaluation of our business that are not
required by or presented in accordance with GAAP. The Company
excludes the impact of amortization expense from acquired
intangible assets from adjusted operating income and adjusted
operating margin, and the impact of amortization expense from
acquired intangible assets, including the related tax effects, from
adjusted diluted earnings per share. We do not adjust for the
revenue that is generated in part from the use of our acquired
intangible assets. Amortization expense, unlike the related
revenue, is not affected by operations in any particular period
unless an intangible asset becomes impaired, or the useful life of
an intangible asset is revised.
When used in conjunction with our GAAP results, we believe these
non-GAAP measures provide investors with meaningful supplemental
measures of our performance period to period, make it easier for
investors to compare our underlying business performance to peers,
and align to how management analyzes trends and evaluates
performance internally. The Company provides non-GAAP financial
information on this basis to facilitate comparability when we
report earnings results. These non-GAAP measures should not be a
substitute for their comparable GAAP financial measures. Investors
should rely primarily on our GAAP results and use non-GAAP
financial measures only supplementally in making investment
decisions. Our calculation of non-GAAP measures may not be
comparable to similarly titled measures reported by other companies
and other companies may not define these non-GAAP financial
measures in the same way, which may limit their usefulness as
comparative measures.
|
RECONCILIATION OF
ADJUSTED OPERATING INCOME AND ADJUSTED OPERATING
MARGIN
|
|
|
Three Months Ended
(1)
|
|
|
|
Fiscal Year Ended
(2)
|
|
|
|
USD in
millions
|
February 2,
2025
|
|
January 28,
2024
|
|
%
Change
|
|
February 2,
2025
|
|
January 28,
2024
|
|
%
Change
|
|
Operating income
(GAAP)
|
$ 4,495
|
|
$ 4,143
|
|
8.5 %
|
|
$
21,526
|
|
$
21,689
|
|
(0.8) %
|
|
Operating margin
(3)
|
11.3 %
|
|
11.9 %
|
|
|
|
13.5 %
|
|
14.2 %
|
|
|
|
Acquired intangible
asset amortization (4)
|
145
|
|
50
|
|
|
|
425
|
|
186
|
|
|
|
Adjusted operating
income (Non-GAAP)
|
$ 4,640
|
|
$ 4,193
|
|
10.7 %
|
|
$
21,951
|
|
$
21,875
|
|
0.3 %
|
|
Adjusted operating
margin (Non-GAAP) (5)
|
11.7 %
|
|
12.1 %
|
|
|
|
13.8 %
|
|
14.3 %
|
|
|
|
—————
|
|
(1)
|
Three months ended February 2, 2025 and January 28,
2024 includes 14 and 13 weeks, respectively.
|
|
(2)
|
Fiscal year ended February 2, 2025 and January 28,
2024 includes 53 and 52 weeks, respectively.
|
|
(3)
|
Operating margin is calculated as operating income
divided by total net sales.
|
|
(4)
|
Amounts include acquired intangible asset
amortization of $93 million and $218 million during the three
months and fiscal year ended February 2, 2025, respectively,
related to SRS which was acquired on June 18,
2024.
|
|
(5)
|
Adjusted operating margin is calculated as adjusted
operating income divided by total net sales.
|
Our adjusted operating margin guidance for fiscal 2025 excludes
an expected approximately 40 basis point impact from acquired
intangible asset amortization.
|
RECONCILIATION OF
ADJUSTED DILUTED EARNINGS PER SHARE
|
|
|
Three Months Ended
(1)
|
|
|
|
Fiscal Year Ended
(2)
|
|
|
|
per share
amounts
|
February 2,
2025
|
|
January 28,
2024
|
|
%
Change
|
|
February 2,
2025
|
|
January 28,
2024
|
|
%
Change
|
|
Diluted earnings per
share (GAAP)
|
$
3.02
|
|
$
2.82
|
|
7.1 %
|
|
$
14.91
|
|
$
15.11
|
|
(1.3) %
|
|
Impact of acquired
intangible asset amortization
|
0.14
|
|
0.05
|
|
|
|
0.43
|
|
0.19
|
|
|
|
Income tax impact of
non-GAAP adjustment (3)
|
(0.03)
|
|
(0.01)
|
|
|
|
(0.10)
|
|
(0.05)
|
|
|
|
Adjusted diluted
earnings per share (Non-GAAP)
|
$
3.13
|
|
$
2.86
|
|
9.4 %
|
|
$
15.24
|
|
$
15.25
|
|
(0.1) %
|
|
—————
|
|
(1)
|
Three months ended February 2, 2025 and January 28,
2024 includes 14 and 13 weeks, respectively. The 14th week of the
fourth quarter of fiscal 2024 increased adjusted diluted earnings
per share by approximately $0.30.
|
|
(2)
|
Fiscal year ended February 2, 2025 and January 28,
2024 includes 53 and 52 weeks, respectively. The 53rd week of
fiscal 2024 increased adjusted diluted earnings per share by
approximately $0.30.
|
|
(3)
|
Calculated as the per share impact of acquired
intangible asset amortization multiplied by the Company's effective
tax rate for the period.
|
Our adjusted diluted earnings per share guidance for fiscal 2025
excludes an expected after-tax impact of approximately $0.40 from acquired intangible asset
amortization.
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SOURCE The Home Depot
