ATLANTA, Feb. 21,
2023 /PRNewswire/ -- The Home Depot®, the
world's largest home improvement retailer, today reported fourth
quarter and fiscal 2022 results.
Fourth Quarter 2022
Sales for the fourth quarter of fiscal 2022 were $35.8 billion, an increase of $112 million, or 0.3 percent from the fourth
quarter of fiscal 2021. Comparable sales for the fourth quarter of
fiscal 2022 decreased 0.3 percent, and comparable sales in the U.S.
decreased 0.3 percent.
Net earnings for the fourth quarter of fiscal 2022 were
$3.4 billion, or $3.30 per diluted share, compared with net
earnings of $3.4 billion, or
$3.21 per diluted share, in the same
period of fiscal 2021. For the fourth quarter of fiscal 2022,
diluted earnings per share increased 2.8 percent from the same
period in the prior year.
Fiscal 2022
Sales for fiscal 2022 were $157.4
billion, an increase of $6.2
billion, or 4.1 percent, from fiscal 2021. Comparable sales
for fiscal 2022 increased 3.1 percent, and comparable sales in the
U.S. increased 2.9 percent.
Net earnings for fiscal 2022 were $17.1
billion, or $16.69 per diluted
share, compared with net earnings of $16.4
billion, or $15.53 per diluted
share in fiscal 2021. For fiscal year 2022, diluted earnings per
share increased 7.5 percent versus last year.
"Fiscal 2022 was another record year for The Home Depot as our
team continued to successfully execute in a challenging and dynamic
environment," said Ted Decker,
chair, president and CEO. "Our ability to deliver growth on top of
the $40 billion of sales growth
achieved over the prior two-year period, while navigating
persistent inflation, ongoing global supply chain disruptions, and
a tight labor market, is a testament to investments we have made in
the business, as well as our associates' relentless focus on our
customers. I would like to thank our associates and our many
partners for their hard work and dedication to our customers."
Investment in Associates
The Home Depot's associates are a key differentiator and
competitive advantage for the company. In alignment with its core
values, the company will invest in wage, benefits, training, and
career development for its associates. Beginning in the first
quarter of fiscal 2023, The Home Depot will invest an additional
approximately $1 billion in
annualized compensation for frontline, hourly associates.
"The most important investment we can make is in our people. We
believe this investment will position us favorably in the market,
enabling us to attract and retain the level of talent needed to
sustain the customer experience we strive to deliver," Decker said.
Dividend Declaration
The Company today announced that its board of directors approved
a 10 percent increase in its quarterly dividend to $2.09 per share, which equates to an annual
dividend of $8.36 per share.
The dividend is payable on March 23,
2023, to shareholders of record on the close of business on
March 9, 2023. This is the
144th consecutive quarter the Company has paid a cash
dividend.
Fiscal 2023 Guidance
The Company is providing the following guidance for fiscal
2023:
- Sales growth and comparable sales growth to be approximately
flat compared to fiscal 2022
- Operating margin rate of approximately 14.5 percent, which
reflects approximately $1 billion in
additional annual compensation for frontline, hourly
associates
- Tax rate of approximately 24.5 percent
- Diluted earnings-per-share-percent-decline to be mid-single
digits
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 2,322 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
475,000 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; net sales growth; comparable sales; the effects of
competition; our brand and reputation; implementation of store,
interconnected retail, 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; international trade
disputes, natural disasters, climate change, public health issues
(including the continuing impacts of the COVID-19 pandemic and the
related recovery), cybersecurity events, military conflicts or acts
of war, supply chain disruptions, and other business interruptions
that could compromise data privacy or disrupt operation of our
stores, distribution centers and other facilities, our ability to
operate or access communications, financial or banking systems, or
supply or delivery of, or demand for, our products or services; our
ability to address expectations regarding environmental, social and
governance (ESG) matters and meet ESG goals; continuation or
suspension of share repurchases; net earnings performance; earnings
per share; dividend targets; 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 international operations; 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 2023 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 30,
2022 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 29,
2023
|
|
January 30,
2022
|
|
% Change
|
|
January 29,
2023
|
|
January 30,
2022
|
|
% Change
|
|
Net sales
|
$
35,831
|
|
$
35,719
|
|
0.3 %
|
|
$ 157,403
|
|
$ 151,157
|
|
4.1 %
|
|
Cost of
sales
|
23,905
|
|
23,857
|
|
0.2
|
|
104,625
|
|
100,325
|
|
4.3
|
|
Gross
profit
|
11,926
|
|
11,862
|
|
0.5
|
|
52,778
|
|
50,832
|
|
3.8
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
6,549
|
|
6,431
|
|
1.8
|
|
26,284
|
|
25,406
|
|
3.5
|
|
Depreciation and
amortization
|
625
|
|
606
|
|
3.1
|
|
2,455
|
|
2,386
|
|
2.9
|
|
Total operating
expenses
|
7,174
|
|
7,037
|
|
1.9
|
|
28,739
|
|
27,792
|
|
3.4
|
|
Operating
income
|
4,752
|
|
4,825
|
|
(1.5)
|
|
24,039
|
|
23,040
|
|
4.3
|
|
Interest and other
(income) expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income and
other, net
|
(43)
|
|
(18)
|
|
N/M
|
|
(55)
|
|
(44)
|
|
25.0
|
|
Interest
expense
|
451
|
|
341
|
|
32.3
|
|
1,617
|
|
1,347
|
|
20.0
|
|
Interest and
other, net
|
408
|
|
323
|
|
26.3
|
|
1,562
|
|
1,303
|
|
19.9
|
|
Earnings before
provision for income taxes
|
4,344
|
|
4,502
|
|
(3.5)
|
|
22,477
|
|
21,737
|
|
3.4
|
|
Provision for income
taxes
|
982
|
|
1,150
|
|
(14.6)
|
|
5,372
|
|
5,304
|
|
1.3
|
|
Net earnings
|
$ 3,362
|
|
$ 3,352
|
|
0.3 %
|
|
$
17,105
|
|
$
16,433
|
|
4.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average
common shares
|
1,015
|
|
1,038
|
|
(2.2) %
|
|
1,022
|
|
1,054
|
|
(3.0) %
|
|
Basic earnings per
share
|
$ 3.31
|
|
$ 3.23
|
|
2.5
|
|
$ 16.74
|
|
$ 15.59
|
|
7.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares
|
1,018
|
|
1,043
|
|
(2.4) %
|
|
1,025
|
|
1,058
|
|
(3.1) %
|
|
Diluted earnings per
share
|
$ 3.30
|
|
$ 3.21
|
|
2.8
|
|
$ 16.69
|
|
$ 15.53
|
|
7.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Fiscal Year
Ended
|
|
|
|
Selected Sales
Data (1)
|
January 29,
2023
|
|
January 30,
2022
|
|
% Change
|
|
January 29,
2023
|
|
January 30,
2022
|
|
% Change
|
|
Customer transactions
(in millions)
|
378.5
|
|
402.5
|
|
(6.0) %
|
|
1,666.4
|
|
1,759.7
|
|
(5.3) %
|
|
Average
ticket
|
$ 90.05
|
|
$ 85.11
|
|
5.8
|
|
$ 90.36
|
|
$ 83.04
|
|
8.8
|
|
Sales per retail square
foot
|
$
571.15
|
|
$
571.79
|
|
(0.1)
|
|
$
627.17
|
|
$
604.74
|
|
3.7
|
|
|
|
|
|
|
(1)
|
Selected Sales Data
does not include results for HD Supply.
|
|
THE HOME DEPOT,
INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
in
millions
|
January 29,
2023
|
|
January 30,
2022
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
2,757
|
|
$
2,343
|
|
Receivables,
net
|
3,317
|
|
3,426
|
|
Merchandise
inventories
|
24,886
|
|
22,068
|
|
Other current
assets
|
1,511
|
|
1,218
|
|
Total current
assets
|
32,471
|
|
29,055
|
|
Net property and
equipment
|
25,631
|
|
25,199
|
|
Operating lease
right-of-use assets
|
6,941
|
|
5,968
|
|
Goodwill
|
7,444
|
|
7,449
|
|
Other assets
|
3,958
|
|
4,205
|
|
Total
assets
|
$
76,445
|
|
$
71,876
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term
debt
|
$
—
|
|
$
1,035
|
|
Accounts
payable
|
11,443
|
|
13,462
|
|
Accrued salaries and
related expenses
|
1,991
|
|
2,426
|
|
Current installments
of long-term debt
|
1,231
|
|
2,447
|
|
Current operating
lease liabilities
|
945
|
|
830
|
|
Other current
liabilities
|
7,500
|
|
8,493
|
|
Total current
liabilities
|
23,110
|
|
28,693
|
|
Long-term debt,
excluding current installments
|
41,962
|
|
36,604
|
|
Long-term operating
lease liabilities
|
6,226
|
|
5,353
|
|
Other long-term
liabilities
|
3,585
|
|
2,922
|
|
Total
liabilities
|
74,883
|
|
73,572
|
|
Total stockholders'
equity (deficit)
|
1,562
|
|
(1,696)
|
|
Total liabilities and
stockholders' equity
|
$
76,445
|
|
$
71,876
|
|
THE HOME DEPOT,
INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(Unaudited)
|
|
|
Fiscal Year
Ended
|
|
in
millions
|
January 29,
2023
|
|
January 30,
2022
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net earnings
|
$
17,105
|
|
$
16,433
|
|
Reconciliation of net
earnings to net cash provided by operating activities:
|
|
|
|
|
Depreciation and
amortization
|
2,975
|
|
2,862
|
|
Stock-based
compensation expense
|
366
|
|
399
|
|
Changes in working
capital
|
(6,240)
|
|
(3,043)
|
|
Changes in deferred
income taxes
|
138
|
|
(276)
|
|
Other operating
activities
|
271
|
|
196
|
|
Net cash
provided by operating activities
|
14,615
|
|
16,571
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Capital
expenditures
|
(3,119)
|
|
(2,566)
|
|
Payments for businesses
acquired, net
|
—
|
|
(421)
|
|
Other investing
activities
|
(21)
|
|
18
|
|
Net cash used in
investing activities
|
(3,140)
|
|
(2,969)
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
(Repayments of)
proceeds from short-term debt, net
|
(1,035)
|
|
1,035
|
|
Proceeds from long-term
debt, net of discounts
|
6,942
|
|
2,979
|
|
Repayments of long-term
debt
|
(2,491)
|
|
(1,532)
|
|
Repurchases of common
stock
|
(6,696)
|
|
(14,809)
|
|
Proceeds from sales of
common stock
|
264
|
|
337
|
|
Cash
dividends
|
(7,789)
|
|
(6,985)
|
|
Other financing
activities
|
(188)
|
|
(145)
|
|
Net cash used in
financing activities
|
(10,993)
|
|
(19,120)
|
|
Change in cash and cash
equivalents
|
482
|
|
(5,518)
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
(68)
|
|
(34)
|
|
Cash and cash
equivalents at beginning of year
|
2,343
|
|
7,895
|
|
Cash and cash
equivalents at end of year
|
$
2,757
|
|
$
2,343
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/the-home-depot-announces-fourth-quarter-and-fiscal-2022-results-plans-to-invest-approximately-1-billion-in-annualized-compensation-for-frontline-hourly-associates-increases-quarterly-dividend-by-10-percent-provides-fiscal-202-301751298.html
SOURCE The Home Depot