ATLANTA, Feb. 21, 2017 /PRNewswire/ -- The Home
Depot®, the world's largest home improvement retailer,
today reported sales of $22.2 billion
for the fourth quarter of fiscal 2016, a 5.8 percent increase from
the fourth quarter of fiscal 2015. Comparable store sales for the
fourth quarter of fiscal 2016 were positive 5.8 percent, and comp
sales for U.S. stores were positive 6.3 percent.
Net earnings for the fourth quarter of fiscal 2016 were
$1.7 billion, or $1.44 per diluted share, compared with net
earnings of $1.5 billion, or
$1.17 per diluted share, in the same
period of fiscal 2015. For the fourth quarter of fiscal 2016,
diluted earnings per share increased 23.1 percent from the same
period in the prior year.
Fiscal 2016
Sales for fiscal 2016 were $94.6
billion, an increase of 6.9 percent from fiscal 2015. Total
company comparable store sales for fiscal 2016 increased 5.6
percent, and comp sales for U.S. stores were positive 6.2 percent
for the year.
Earnings per diluted share in fiscal 2016 were $6.45, compared to $5.46 per diluted share in fiscal 2015, an
increase of 18.1 percent.
"Our focus on providing localized and innovative product
selection, improving the interconnected customer experience, and
driving productivity resulted in record sales and net earnings for
2016," said Craig Menear, chairman,
CEO and president. "Our associates responded to a healthy housing
market and strong customer demand, and I'd like to thank them for
their execution, hard work and continued dedication to our
customers."
Capital Allocation Strategy
As a reflection of the progress on the Company's strategic
initiatives, and commitment to creating shareholder value, today
the Company made the following announcements:
- The Company's targeted dividend payout ratio will be increased
from 50 percent to 55 percent of net earnings;
- The board of directors declared a 29 percent increase in the
quarterly dividend to $0.89 per
share. The dividend is payable on March 23,
2017, to shareholders of record on the close of business on
March 9, 2017. This is the 120th
consecutive quarter the Company has paid a cash dividend;
- The board of directors has authorized a $15.0 billion share repurchase program, replacing
its previous authorization. Since 2002 and through January 29, 2017, the Company has returned more
than $67 billion of cash to
shareholders through repurchases, repurchasing approximately 1.3
billion shares.
Fiscal 2017 Guidance
The Company provided the following guidance for fiscal 2017:
- Sales growth of approximately 4.6 percent
- Comparable store sales growth of approximately 4.6 percent
- Six new stores
- Gross margin decrease of approximately 15 basis points
- Operating margin expansion of approximately 30 basis
points
- Tax rate of approximately 36.3 percent
- Share repurchases of approximately $5.0
billion
- Diluted earnings-per-share growth after anticipated share
repurchases of approximately 10.5 percent, or $7.13
- Capital spending of approximately $2.0
billion
- Depreciation and amortization expense of approximately
$2.0 billion
- Cash flow from the business of approximately $11.3 billion
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 2,278 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S.
Virgin Islands, Guam, 10
Canadian provinces and Mexico. The
Company employs more than 400,000 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 store sales; effects of
competition; state of the economy; state of the residential
construction, housing and home improvement markets; state of the
credit markets, including mortgages, home equity loans and consumer
credit; demand for credit offerings; inventory and in-stock
positions; implementation of store, interconnected retail and
supply chain initiatives; management of relationships with our
suppliers and vendors; the impact and expected outcome of
investigations, inquiries, claims and litigation, including
those related to the 2014 data breach; issues related to the
payment methods we accept; continuation of share repurchase
programs; net earnings performance; earnings per share; dividend
targets; capital allocation and expenditures; liquidity; return on
invested capital; expense leverage; stock-based compensation
expense; commodity price inflation and deflation; the ability to
issue debt on terms and at rates acceptable to us; the effect of
accounting charges; the effect of adopting certain accounting
standards; store openings and closures; guidance for fiscal 2017
and beyond; financial outlook; and the integration of Interline
Brands, Inc. ("Interline") into our organization and the ability to
recognize the anticipated synergies and benefits of the
acquisition. 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 or are
currently unknown to us – as well as potentially inaccurate
assumptions that could cause actual results to differ materially
from our expectations and projections. These risks and
uncertainties include but are not limited to those described in
Item 1A, "Risk Factors," and elsewhere in our Annual Report on Form
10-K for our fiscal year ended January 31,
2016 and in our subsequent Quarterly Reports on Form
10-Q.
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 periodic filings
with the Securities and Exchange Commission.
THE HOME DEPOT,
INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF EARNINGS
FOR THE THREE
MONTHS AND FISCAL YEARS ENDED JANUARY 29, 2017 AND
JANUARY 31, 2016
(Unaudited)
(Amounts in Millions Except Per Share Data and as Otherwise
Noted) |
|
|
Three Months
Ended
|
|
|
|
Fiscal Year
Ended
|
|
|
|
January 29,
2017
|
|
January 31,
2016
|
|
% Increase
(Decrease)
|
|
January 29,
2017
|
|
January 31,
2016
|
|
% Increase
(Decrease)
|
NET
SALES
|
$
|
22,207
|
|
|
$
|
20,980
|
|
|
5.8
|
%
|
|
$
|
94,595
|
|
|
$
|
88,519
|
|
|
6.9
|
%
|
Cost of
Sales
|
14,654
|
|
|
13,824
|
|
|
6.0
|
|
|
62,282
|
|
|
58,254
|
|
|
6.9
|
|
GROSS
PROFIT
|
7,553
|
|
|
7,156
|
|
|
5.5
|
|
|
32,313
|
|
|
30,265
|
|
|
6.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General and
Administrative
|
4,183
|
|
|
4,178
|
|
|
0.1
|
|
|
17,132
|
|
|
16,801
|
|
|
2.0
|
|
Depreciation and
Amortization
|
443
|
|
|
429
|
|
|
3.3
|
|
|
1,754
|
|
|
1,690
|
|
|
3.8
|
|
Total Operating
Expenses
|
4,626
|
|
|
4,607
|
|
|
0.4
|
|
|
18,886
|
|
|
18,491
|
|
|
2.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
2,927
|
|
|
2,549
|
|
|
14.8
|
|
|
13,427
|
|
|
11,774
|
|
|
14.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and Other
(Income) Expense:
|
|
|
|
|
|
|
|
|
|
|
|
Interest and
Investment Income
|
(11)
|
|
|
(6)
|
|
|
83.3
|
|
|
(36)
|
|
|
(166)
|
|
|
(78.3)
|
|
Interest
Expense
|
246
|
|
|
242
|
|
|
1.7
|
|
|
972
|
|
|
919
|
|
|
5.8
|
|
Interest and Other,
net
|
235
|
|
|
236
|
|
|
(0.4)
|
|
|
936
|
|
|
753
|
|
|
24.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS BEFORE
PROVISION FOR
INCOME
TAXES
|
2,692
|
|
|
2,313
|
|
|
16.4
|
|
|
12,491
|
|
|
11,021
|
|
|
13.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Income
Taxes
|
948
|
|
|
842
|
|
|
12.6
|
|
|
4,534
|
|
|
4,012
|
|
|
13.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
EARNINGS
|
$
|
1,744
|
|
|
$
|
1,471
|
|
|
18.6
|
%
|
|
$
|
7,957
|
|
|
$
|
7,009
|
|
|
13.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Common Shares
|
1,206
|
|
|
1,252
|
|
|
(3.7)
|
%
|
|
1,229
|
|
|
1,277
|
|
|
(3.8)
|
%
|
BASIC EARNINGS PER
SHARE
|
$
|
1.45
|
|
|
$
|
1.17
|
|
|
23.9
|
|
|
$
|
6.47
|
|
|
$
|
5.49
|
|
|
17.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Common Shares
|
1,211
|
|
|
1,259
|
|
|
(3.8)
|
%
|
|
1,234
|
|
|
1,283
|
|
|
(3.8)
|
%
|
DILUTED EARNINGS
PER SHARE
|
$
|
1.44
|
|
|
$
|
1.17
|
|
|
23.1
|
|
|
$
|
6.45
|
|
|
$
|
5.46
|
|
|
18.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Fiscal Year
Ended
|
|
|
SELECTED SALES
DATA(1)
|
January 29,
2017
|
|
January 31,
2016
|
|
% Increase
(Decrease)
|
|
January 29,
2017
|
|
January 31,
2016
|
|
% Increase
(Decrease)
|
Number of Customer
Transactions
|
359.2
|
|
|
349.1
|
|
|
2.9
|
%
|
|
1,544.0
|
|
|
1,500.8
|
|
|
2.9
|
%
|
Average Ticket
(actual)
|
$
|
60.65
|
|
|
$
|
58.96
|
|
|
2.9
|
|
|
$
|
60.35
|
|
|
$
|
58.77
|
|
|
2.7
|
|
Sales per Square Foot
(actual)
|
$
|
366.25
|
|
|
$
|
346.55
|
|
|
5.7
|
|
|
$
|
390.78
|
|
|
$
|
370.55
|
|
|
5.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Selected Sales Data does not include
results for Interline, which was acquired in the third quarter of
fiscal 2015.
|
THE HOME DEPOT,
INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
AS OF
JANUARY 29, 2017 AND JANUARY 31, 2016
(Unaudited)
(Amounts in
Millions)
|
|
|
|
|
January
29, 2017
|
|
|
January
31, 2016 (1)
|
|
ASSETS
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$
|
2,538
|
|
|
$
|
2,216
|
|
Receivables,
net
|
2,029
|
|
|
1,890
|
|
Merchandise
Inventories
|
12,549
|
|
|
11,809
|
|
Other Current
Assets
|
608
|
|
|
569
|
|
Total Current
Assets
|
17,724
|
|
|
16,484
|
|
|
|
|
|
|
|
Property and
Equipment, net
|
21,914
|
|
|
22,191
|
|
Goodwill
|
2,093
|
|
|
2,102
|
|
Other
Assets
|
1,235
|
|
|
1,196
|
|
TOTAL
ASSETS
|
$
|
42,966
|
|
|
$
|
41,973
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Short-Term
Debt
|
$
|
710
|
|
|
$
|
350
|
|
Accounts
Payable
|
7,000
|
|
|
6,565
|
|
Accrued Salaries and
Related Expenses
|
1,484
|
|
|
1,515
|
|
Current Installments
of Long-Term Debt
|
542
|
|
|
77
|
|
Other Current
Liabilities
|
4,397
|
|
|
4,017
|
|
Total Current
Liabilities
|
14,133
|
|
|
12,524
|
|
|
|
|
|
|
|
Long-Term Debt,
excluding current installments
|
22,349
|
|
|
20,789
|
|
Other Long-Term
Liabilities
|
2,151
|
|
|
2,344
|
|
Total
Liabilities
|
38,633
|
|
|
35,657
|
|
|
|
|
|
|
|
Total Stockholders'
Equity
|
4,333
|
|
|
6,316
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
42,966
|
|
|
$
|
41,973
|
|
|
|
|
|
|
|
|
|
(1)
The Consolidated Balance Sheet as of
January 31, 2016 was retrospectively adjusted to reflect the
adoption of Accounting Standards Update ("ASU") No. 2015-03,
"Interest - Imputation of Interest (Subtopic 835-30): Simplifying
the Presentation of Debt Issuance Costs" and ASU No. 2015-17,
"Income Taxes (Topic 740): Balance Sheet Classification of Deferred
Taxes" in the first quarter of fiscal 2016.
|
|
THE HOME DEPOT,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE FISCAL
YEARS ENDED JANUARY 29, 2017 AND JANUARY 31,
2016
(Unaudited)
(Amounts in
Millions)
|
|
|
|
|
Fiscal Year
Ended
|
|
|
January 29,
2017
|
|
|
January 31,
2016
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
Net
Earnings
|
$
|
7,957
|
|
|
$
|
7,009
|
|
Reconciliation of Net
Earnings to Net Cash Provided by Operating Activities:
|
|
|
|
|
|
Depreciation and
Amortization
|
1,973
|
|
|
1,863
|
|
Stock-Based
Compensation Expense
|
267
|
|
|
244
|
|
Gain on Sales of
Investments
|
—
|
|
|
(144)
|
|
Changes in Working
Capital and Other
|
(414)
|
|
|
401
|
|
Net Cash Provided by
Operating Activities
|
9,783
|
|
|
9,373
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
Capital
Expenditures
|
(1,621)
|
|
|
(1,503)
|
|
Proceeds from Sales
of Investments
|
—
|
|
|
144
|
|
Payments for
Businesses Acquired, net
|
—
|
|
|
(1,666)
|
|
Proceeds from Sales
of Property and Equipment
|
38
|
|
|
43
|
|
Net Cash Used in
Investing Activities
|
(1,583)
|
|
|
(2,982)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from
Short-Term Borrowings, net
|
360
|
|
|
60
|
|
Proceeds from
Long-Term Borrowings, net of discounts
|
4,959
|
|
|
3,991
|
|
Repayments of
Long-Term Debt
|
(3,045)
|
|
|
(39)
|
|
Repurchases of Common
Stock
|
(6,880)
|
|
|
(7,000)
|
|
Proceeds from Sales
of Common Stock
|
218
|
|
|
228
|
|
Cash Dividends Paid
to Stockholders
|
(3,404)
|
|
|
(3,031)
|
|
Other Financing
Activities
|
(78)
|
|
|
4
|
|
Net Cash Used in
Financing Activities
|
(7,870)
|
|
|
(5,787)
|
|
|
|
|
|
|
|
Change in Cash and
Cash Equivalents
|
330
|
|
|
604
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
(8)
|
|
|
(111)
|
|
Cash and Cash
Equivalents at Beginning of Period
|
2,216
|
|
|
1,723
|
|
Cash and Cash
Equivalents at End of Period
|
$
|
2,538
|
|
|
$
|
2,216
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/the-home-depot-announces-fourth-quarter-and-fiscal-2016-results-300410308.html
SOURCE The Home Depot