ATLANTA, Feb. 20,
2024 /CNW/ -- The Home Depot®, the world's
largest home improvement retailer, today reported fourth quarter
and fiscal 2023 results.
Fourth Quarter 2023
Sales for the fourth quarter of fiscal 2023 were $34.8 billion, a decrease of 2.9% from the fourth
quarter of fiscal 2022. Comparable sales for the fourth quarter of
fiscal 2023 decreased 3.5%, and comparable sales in the U.S.
decreased 4.0%.
Net earnings for the fourth quarter of fiscal 2023 were
$2.8 billion, or $2.82 per diluted share, compared with net
earnings of $3.4 billion, or
$3.30 per diluted share, in the same
period of fiscal 2022. For the fourth quarter of fiscal 2023,
diluted earnings per share decreased 14.5% from the same period in
the prior year.
Fiscal 2023
Sales for fiscal 2023 were $152.7
billion, a decrease of 3.0% from fiscal 2022. Comparable
sales for fiscal 2023 decreased 3.2%, and comparable sales in the
U.S. decreased 3.5%.
Net earnings for fiscal 2023 were $15.1
billion, or $15.11 per diluted
share, compared with net earnings of $17.1
billion, or $16.69 per diluted
share in fiscal 2022. For fiscal 2023, diluted earnings per share
decreased 9.5% versus last year.
"After three years of exceptional growth for our business, 2023
was a year of moderation," said Ted
Decker, chair, president, and CEO. "During fiscal 2023, we
focused on several initiatives to strengthen the business while
also staying true to our strategic investments of creating the best
interconnected experience, growing our pro wallet share through our
unique ecosystem of capabilities, and building new stores. We
remain excited about the future for home improvement and our
ability to grow share in our large and fragmented market, which we
estimate to be over $950 billion. I
also want to thank our associates for their hard work and
dedication to serving our customers and communities."
Dividend Declaration
The Company today announced that its board of directors approved
a 7.7% increase in its quarterly dividend to $2.25 per share, which equates to an annual
dividend of $9.00 per share.
The dividend is payable on March 21,
2024, to shareholders of record on the close of business on
March 7, 2024. This is the
148th consecutive quarter the Company has paid a cash
dividend.
Fiscal 2024 Guidance
The company will have 53 weeks of operating results in fiscal
2024 and provides the following guidance for fiscal 2024:
- 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 fourth quarter, the company operated a total
of 2,335 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;
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 29,
2023 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
|
|
|
|
Fiscal Year
Ended
|
|
|
in millions,
except per share data
|
January 28,
2024
|
|
January 29,
2023
|
|
% Change
|
|
January 28,
2024
|
|
January 29,
2023
|
|
% Change
|
Net sales
|
$
34,786
|
|
$
35,831
|
|
(2.9) %
|
|
$ 152,669
|
|
$ 157,403
|
|
(3.0) %
|
Cost of
sales
|
23,278
|
|
23,905
|
|
(2.6)
|
|
101,709
|
|
104,625
|
|
(2.8)
|
Gross
profit
|
11,508
|
|
11,926
|
|
(3.5)
|
|
50,960
|
|
52,778
|
|
(3.4)
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
6,679
|
|
6,549
|
|
2.0
|
|
26,598
|
|
26,284
|
|
1.2
|
Depreciation and
amortization
|
686
|
|
625
|
|
9.8
|
|
2,673
|
|
2,455
|
|
8.9
|
Total operating
expenses
|
7,365
|
|
7,174
|
|
2.7
|
|
29,271
|
|
28,739
|
|
1.9
|
Operating
income
|
4,143
|
|
4,752
|
|
(12.8)
|
|
21,689
|
|
24,039
|
|
(9.8)
|
Interest and other
(income) expense:
|
|
|
|
|
|
|
|
|
|
|
|
Interest income and
other, net
|
(55)
|
|
(43)
|
|
27.9
|
|
(178)
|
|
(55)
|
|
N/M
|
Interest
expense
|
513
|
|
451
|
|
13.7
|
|
1,943
|
|
1,617
|
|
20.2
|
Interest and
other, net
|
458
|
|
408
|
|
12.3
|
|
1,765
|
|
1,562
|
|
13.0
|
Earnings before
provision for income taxes
|
3,685
|
|
4,344
|
|
(15.2)
|
|
19,924
|
|
22,477
|
|
(11.4)
|
Provision for income
taxes
|
884
|
|
982
|
|
(10.0)
|
|
4,781
|
|
5,372
|
|
(11.0)
|
Net earnings
|
$ 2,801
|
|
$ 3,362
|
|
(16.7) %
|
|
$
15,143
|
|
$
17,105
|
|
(11.5) %
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average
common shares
|
991
|
|
1,015
|
|
(2.4) %
|
|
999
|
|
1,022
|
|
(2.3) %
|
Basic earnings per
share
|
$ 2.83
|
|
$ 3.31
|
|
(14.5)
|
|
$ 15.16
|
|
$ 16.74
|
|
(9.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares
|
994
|
|
1,018
|
|
(2.4) %
|
|
1,002
|
|
1,025
|
|
(2.2) %
|
Diluted earnings per
share
|
$ 2.82
|
|
$ 3.30
|
|
(14.5)
|
|
$ 15.11
|
|
$ 16.69
|
|
(9.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Fiscal Year
Ended
|
|
|
Selected Sales
Data (1)
|
January 28,
2024
|
|
January 29,
2023
|
|
% Change
|
|
January 28,
2024
|
|
January 29,
2023
|
|
% Change
|
Customer transactions
(in millions)
|
372.0
|
|
378.5
|
|
(1.7) %
|
|
1,621.8
|
|
1,666.4
|
|
(2.7) %
|
Average
ticket
|
$ 88.87
|
|
$ 90.05
|
|
(1.3)
|
|
$ 90.07
|
|
$ 90.36
|
|
(0.3)
|
Sales per retail square
foot
|
$
550.50
|
|
$
571.15
|
|
(3.6)
|
|
$
604.55
|
|
$
627.17
|
|
(3.6)
|
|
|
|
|
|
|
|
|
(1)
|
Selected Sales Data
does not include results for HD Supply.
|
THE HOME DEPOT,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
in
millions
|
January 28,
2024
|
|
January 29,
2023
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
3,760
|
|
$
2,757
|
Receivables,
net
|
3,328
|
|
3,317
|
Merchandise
inventories
|
20,976
|
|
24,886
|
Other current
assets
|
1,711
|
|
1,511
|
Total current
assets
|
29,775
|
|
32,471
|
Net property and
equipment
|
26,154
|
|
25,631
|
Operating lease
right-of-use assets
|
7,884
|
|
6,941
|
Goodwill
|
8,455
|
|
7,444
|
Other assets
|
4,262
|
|
3,958
|
Total
assets
|
$
76,530
|
|
$
76,445
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
10,037
|
|
$
11,443
|
Accrued salaries and
related expenses
|
2,096
|
|
1,991
|
Current installments
of long-term debt
|
1,368
|
|
1,231
|
Current operating
lease liabilities
|
1,050
|
|
945
|
Other current
liabilities
|
7,464
|
|
7,500
|
Total current
liabilities
|
22,015
|
|
23,110
|
Long-term debt,
excluding current installments
|
42,743
|
|
41,962
|
Long-term operating
lease liabilities
|
7,082
|
|
6,226
|
Other long-term
liabilities
|
3,646
|
|
3,585
|
Total
liabilities
|
75,486
|
|
74,883
|
Total stockholders'
equity
|
1,044
|
|
1,562
|
Total liabilities and
stockholders' equity
|
$
76,530
|
|
$
76,445
|
THE HOME DEPOT,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Fiscal Year
Ended
|
in
millions
|
January 28,
2024
|
|
January 29,
2023
|
Cash Flows from
Operating Activities:
|
|
|
|
Net earnings
|
$
15,143
|
|
$
17,105
|
Reconciliation of net
earnings to net cash provided by operating activities:
|
|
|
|
Depreciation and
amortization
|
3,247
|
|
2,975
|
Stock-based
compensation expense
|
380
|
|
366
|
Changes in working
capital
|
2,333
|
|
(6,240)
|
Changes in deferred
income taxes
|
(245)
|
|
138
|
Other operating
activities
|
314
|
|
271
|
Net cash
provided by operating activities
|
21,172
|
|
14,615
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital
expenditures
|
(3,226)
|
|
(3,119)
|
Payments for businesses
acquired, net
|
(1,514)
|
|
—
|
Other investing
activities
|
11
|
|
(21)
|
Net cash used in
investing activities
|
(4,729)
|
|
(3,140)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Repayments of
short-term debt, net
|
—
|
|
(1,035)
|
Proceeds from long-term
debt, net of discounts
|
1,995
|
|
6,942
|
Repayments of long-term
debt
|
(1,271)
|
|
(2,491)
|
Repurchases of common
stock
|
(7,951)
|
|
(6,696)
|
Proceeds from sales of
common stock
|
323
|
|
264
|
Cash
dividends
|
(8,383)
|
|
(7,789)
|
Other financing
activities
|
(156)
|
|
(188)
|
Net cash used in
financing activities
|
(15,443)
|
|
(10,993)
|
Change in cash and cash
equivalents
|
1,000
|
|
482
|
Effect of exchange rate
changes on cash and cash equivalents
|
3
|
|
(68)
|
Cash and cash
equivalents at beginning of period
|
2,757
|
|
2,343
|
Cash and cash
equivalents at end of period
|
$
3,760
|
|
$
2,757
|
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SOURCE The Home Depot