false000035495000003549502024-08-132024-08-13

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________
FORM 8-K
__________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): August 13, 2024
__________________
THE HOME DEPOT, INC.
(Exact Name of Registrant as Specified in Charter)
 __________________
Delaware1-820795-3261426
(State or Other Jurisdiction
of Incorporation)		  (Commission
File Number)		  (IRS Employer
Identification No.)
2455 Paces Ferry Road, Atlanta, Georgia 30339
(Address of Principal Executive Offices) (Zip Code)
(770) 433-8211
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
  __________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of each exchange on which registered
Common Stock, $0.05 Par Value Per ShareHDNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


 
Item 2.02.     Results of Operations and Financial Condition.
On August 13, 2024, The Home Depot, Inc. (the “Company”) issued a press release, attached as Exhibit 99.1 and incorporated herein by reference, announcing the Company’s financial results for the fiscal quarter ended July 28, 2024.
The information contained in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of Section 18. Furthermore, the information contained in this Item 2.02 and Exhibit 99.1 shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.
Item 9.01.     Financial Statements and Exhibits.
(d)     Exhibits.
Exhibit Description
 
104The cover page of this Current Report on Form 8-K formatted in Inline XBRL (included as Exhibit 101).
2

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
THE HOME DEPOT, INC.
By:/s/ Richard V. McPhail
Name:Richard V. McPhail
     Title:Executive Vice President and Chief Financial Officer
Date: August 12, 2024
3

Exhibit 99.1
thdpms5prcntrulemediuma21.jpg

The Home Depot Announces Second Quarter Fiscal 2024 Results;
Updates Fiscal 2024 Guidance


ATLANTA, August 13, 2024 -- The Home Depot®, the world's largest home improvement retailer, today reported sales of $43.2 billion for the second quarter of fiscal 2024, an increase of 0.6% from the second quarter of fiscal 2023. Total sales include $1.3 billion from the recent acquisition of SRS Distribution Inc. (SRS), which represents approximately six weeks of sales in the quarter. Comparable sales for the second quarter of fiscal 2024 decreased 3.3%, and comparable sales in the U.S. decreased 3.6%.

Operating income for the second quarter of fiscal 2024 was $6.5 billion and operating margin was 15.1%, compared with operating income of $6.6 billion and an operating margin of 15.4% for the second quarter of fiscal 2023.

Adjusted(1) operating income for the second quarter of fiscal 2024 was $6.6 billion and adjusted(1) operating margin was 15.3%, compared with adjusted operating income of $6.6 billion and an adjusted operating margin of 15.5% for the second quarter of fiscal 2023.

Net earnings for the second quarter of fiscal 2024 were $4.6 billion, or $4.60 per diluted share, compared with net earnings of $4.7 billion, or $4.65 per diluted share, in the same period of fiscal 2023.

Adjusted(1) diluted earnings per share for the second quarter of fiscal 2024 were $4.67, compared with adjusted diluted earnings per share of $4.68 in the same period of fiscal 2023.

“The underlying long-term fundamentals supporting home improvement demand are strong,” said Ted Decker, chair, president and CEO. “During the quarter, higher interest rates and greater macro-economic uncertainty pressured consumer demand more broadly, resulting in weaker spend across home improvement projects. However, the team continued to navigate this unique environment while executing at a high level. I would like to thank our associates for their hard work and dedication to serving our customers and communities.”

(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 a reconciliation of the historical non-GAAP financial results used in this release to comparable GAAP results.




Fiscal 2024 Guidance

The company updated its fiscal 2024 guidance, which includes 53 weeks of operating results, to reflect the performance in the first half of fiscal 2024 and include SRS:

•Total sales to increase between 2.5% and 3.5% including the 53rd week
◦53rd week projected to add approximately $2.3 billion to total sales
◦SRS expected to contribute approximately $6.4 billion in incremental sales
•Comparable sales to decline between 3% and 4% for the 52-week period compared to fiscal 2023
◦Comparable sales decline of 3% implies a consumer demand environment consistent with the first half of fiscal 2024
◦While comparable sales for the company are not currently on the trajectory for the low end of the range, a 4% decline implies incremental pressure on consumer demand
•Approximately 12 new stores
•Gross margin of approximately 33.5%
•Operating margin rate to be between 13.5% to 13.6%
•Adjusted(1), (2) operating margin rate to be between 13.8% to 13.9%
•Tax rate of approximately 24%
•Net interest expense of approximately $2.2 billion
•53-week diluted earnings-per-share-percent decline between 2% and 4%
◦53rd week expected to contribute approximately $0.30 of diluted earnings per share compared to fiscal 2023
•53-week adjusted(1), (3) diluted earnings-per-share to decline between 1% and 3%
◦53rd week expected to contribute approximately $0.30 of adjusted diluted earnings per share compared to fiscal 2023

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 second quarter, the company operated a total of 2,340 retail stores and over 760 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 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.

###

(2)    Excludes an expected approximately 30 basis point impact from acquired intangible asset amortization.
(3)    Excludes an expected after-tax impact of approximately $0.30 from acquired intangible asset amortization.


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 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, 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 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, including SRS, 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.

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 a reconciliation of the historical non-GAAP financial results used in this release to comparable GAAP results.

For more information, contact:
Financial CommunityNews Media
Isabel JanciSara Gorman
Vice President of Investor Relations and TreasurerSenior Director of Corporate Communications
770-384-2666770-384-2852
isabel_janci@homedepot.comsara_gorman@homedepot.com


THE HOME DEPOT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
 Three Months EndedSix Months Ended
in millions, except per share dataJuly 28,
2024		July 30,
2023		% ChangeJuly 28,
2024		July 30,
2023		% Change
Net sales$43,175 $42,916 0.6 %$79,593 $80,173 (0.7)%
Cost of sales28,759 28,759 — 52,744 53,459 (1.3)
Gross profit14,416 14,157 1.8 26,849 26,714 0.5 
Operating expenses:
Selling, general and administrative7,144 6,915 3.3 13,811 13,270 4.1 
Depreciation and amortization738 653 13.0 1,425 1,304 9.3 
Total operating expenses7,882 7,568 4.1 15,236 14,574 4.5 
Operating income6,534 6,589 (0.8)11,613 12,140 (4.3)
Interest and other (income) expense:
Interest income and other, net(84)(41)N/M(141)(74)90.5
Interest expense573 469 22.2 1,058 943 12.2 
Interest and other, net489 428 14.3 917 869 5.5 
Earnings before provision for income taxes
6,045 6,161 (1.9)10,696 11,271 (5.1)
Provision for income taxes1,484 1,502 (1.2)2,535 2,739 (7.4)
Net earnings$4,561 $4,659 (2.1)%$8,161 $8,532 (4.3)%
Basic weighted average common shares990 1,000 (1.0)%989 1,005 (1.6)%
Basic earnings per share$4.61 $4.66 (1.1)$8.25 $8.49 (2.8)
Diluted weighted average common shares992 1,003 (1.1)%992 1,008 (1.6)%
Diluted earnings per share$4.60 $4.65 (1.1)$8.23 $8.46 (2.7)
Three Months Ended Six Months Ended
Selected Sales Data (1)
July 28,
2024		July 30,
2023		% ChangeJuly 28,
2024		July 30,
2023		% Change
Customer transactions (in millions)451.0 459.1 (1.8)%837.8 850.1 (1.4)%
Average ticket $88.90 $90.07 (1.3)$89.72 $90.92 (1.3)
Sales per retail square foot
$660.17 $684.65 (3.6)$616.17 $638.50 (3.5)
 —————
(1)Selected Sales Data does not include results for HD Supply or SRS. At this time, we are still evaluating whether SRS results will be incorporated into our selected sales metrics.



 





THE HOME DEPOT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
in millionsJuly 28,
2024		July 30,
2023		January 28,
2024
Assets
Current assets:
Cash and cash equivalents$1,613 $2,814 $3,760 
Receivables, net5,503 3,836 3,328 
Merchandise inventories23,060 23,265 20,976 
Other current assets2,097 1,915 1,711 
Total current assets32,273 31,830 29,775 
Net property and equipment26,640 25,879 26,154 
Operating lease right-of-use assets8,613 7,139 7,884 
Goodwill19,414 7,664 8,455 
Intangible assets, net
9,214 3,235 3,606 
Other assets692 640 656 
Total assets$96,846 $76,387 $76,530 
Liabilities and Stockholders' Equity
Current liabilities:
Short-term debt$2,527 $— $— 
Accounts payable13,206 12,104 10,037 
Accrued salaries and related expenses2,105 2,022 2,096 
Current installments of long-term debt1,339 1,352 1,368 
Current operating lease liabilities1,242 1,011 1,050 
Other current liabilities
7,704 7,738 7,464 
Total current liabilities28,123 24,227 22,015 
Long-term debt, excluding current installments51,869 40,754 42,743 
Long-term operating lease liabilities7,635 6,376 7,082 
Other long-term liabilities4,799 3,695 3,646 
Total liabilities92,426 75,052 75,486 
Total stockholders’ equity 4,420 1,335 1,044 
Total liabilities and stockholders’ equity$96,846 $76,387 $76,530 


THE HOME DEPOT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Six Months Ended
in millionsJuly 28,
2024		July 30,
2023
Cash Flows from Operating Activities:
Net earnings$8,161 $8,532 
Reconciliation of net earnings to net cash provided by operating activities:
Depreciation and amortization, excluding amortization of intangible assets
1,615 1,500 
Intangible asset amortization
142 88 
Stock-based compensation expense222 215 
Changes in working capital667 1,774 
Changes in deferred income taxes159 (48)
Other operating activities(60)144 
Net cash provided by operating activities10,906 12,205 
Cash Flows from Investing Activities:
Capital expenditures(1,566)(1,697)
Payments for businesses acquired, net(17,570)(215)
Other investing activities38 10 
Net cash used in investing activities(19,098)(1,902)
Cash Flows from Financing Activities:
Proceeds from short-term debt, net2,527 — 
Proceeds from long-term debt, net of discounts9,952 — 
Repayments of long-term debt(1,255)(1,130)
Repurchases of common stock(649)(4,954)
Proceeds from sales of common stock210 175 
Cash dividends(4,460)(4,215)
Other financing activities(212)(142)
Net cash provided by (used in) financing activities
6,113 (10,266)
Change in cash and cash equivalents(2,079)37 
Effect of exchange rate changes on cash and cash equivalents(68)20 
Cash and cash equivalents at beginning of period3,760 2,757 
Cash and cash equivalents at end of period$1,613 $2,814 



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 historical 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 EndedSix Months Ended
USD in millions
July 28, 2024July 30, 2023% ChangeJuly 28, 2024July 30, 2023% Change
Operating income (GAAP)$6,534 $6,589 (0.8)%$11,613 $12,140 (4.3)%
Operating margin (1)
15.1 %15.4 %14.6 %15.1 %
Acquired intangible asset amortization (2)
90 44 142 88 
Adjusted operating income (Non-GAAP)$6,624 $6,633 (0.1)%$11,755 $12,228 (3.9)%
Adjusted operating margin (Non-GAAP) (3)
15.3 %15.5 %14.8 %15.3 %
 —————
(1)    Operating margin is calculated as operating income divided by total net sales.
(2)    Amounts include acquired intangible asset amortization related to the SRS acquisition of $39 million during the three and six months ended July 28, 2024.
(3)    Adjusted operating margin is calculated as adjusted operating income divided by total net sales.

RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE

Three Months EndedSix Months Ended
per share amountsJuly 28, 2024July 30, 2023% ChangeJuly 28, 2024July 30, 2023% Change
Diluted earnings per share (GAAP)$4.60 $4.65 (1.1)%$8.23 $8.46 (2.7)%
Impact of acquired intangible asset amortization0.09 0.04 0.14 0.09 
Income tax impact of non-GAAP adjustment (4)
(0.02)(0.01)(0.03)(0.02)
Adjusted diluted earnings per share (Non-GAAP)$4.67 $4.68 (0.2)%$8.34 $8.53 (2.2)%
 —————
(4)    Calculated as the per share impact of acquired intangible asset amortization multiplied by the Company’s effective tax rate for the period.



v3.24.2.u1
Cover Page Cover Page
Aug. 13, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 13, 2024
Entity Registrant Name HOME DEPOT, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 1-8207
Entity Tax Identification Number 95-3261426
Entity Address, Address Line One 2455 Paces Ferry Road
Entity Address, City or Town Atlanta
Entity Address, State or Province GA
Entity Address, Postal Zip Code 30339
City Area Code 770
Local Phone Number 433-8211
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.05 Par Value Per Share
Trading Symbol HD
Security Exchange Name NYSE
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000354950
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