ATLANTA,
Aug. 15, 2017 /CNW/ -- The Home
Depot®, the world's largest home improvement retailer, today
reported sales of $28.1 billion for the second quarter of
fiscal 2017, a 6.2 percent increase from the second quarter of
fiscal 2016. Comparable store sales for the second quarter of
fiscal 2017 were positive 6.3 percent, and comp sales for U.S.
stores were positive 6.6 percent.
Net earnings for the second quarter of fiscal 2017 were
$2.7 billion, or $2.25 per
diluted share, compared with net earnings of $2.4 billion, or $1.97 per diluted
share, in the same period of fiscal 2016. For the second quarter of
fiscal 2017, diluted earnings per share increased 14.2 percent from
the same period in the prior year.
"We were pleased with our results this quarter as our customers
rewarded us with the highest quarterly sales in company history,"
said Craig Menear, chairman, CEO and
president. "We also achieved the highest quarterly net earnings in
company history. These results were made possible by our hard
working associates and the outstanding values brought forth by our
supplier partners."
Updated Fiscal 2017 Guidance
Based on its year-to-date performance, the Company updated its
fiscal 2017 sales growth guidance and now expects sales will be up
approximately 5.3 percent and comp sales will be up approximately
5.5 percent. The Company also raised its diluted earnings-per-share
growth guidance for the year and now expects diluted
earnings-per-share growth of approximately 13.0 percent from fiscal
2016 to $7.29. The Company's diluted
earnings-per-share growth guidance includes the impact of
$7 billion of share repurchases for
fiscal 2017.
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 2,282 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, supply
chain and technology 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 acquired companies into our organization and
the ability to recognize the anticipated synergies and benefits of
those 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 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 29,
2017 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
|
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS
|
FOR THE THREE AND
SIX MONTHS ENDED JULY 30, 2017 AND JULY 31,
2016
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
amounts in
millions, except per share data
|
July 30,
2017
|
|
July 31,
2016
|
|
% Increase
(Decrease)
|
|
July 30,
2017
|
|
July 31,
2016
|
|
% Increase
(Decrease)
|
NET
SALES
|
$
|
28,108
|
|
|
$
|
26,472
|
|
|
6.2
|
%
|
|
$
|
51,995
|
|
|
$
|
49,234
|
|
|
5.6
|
%
|
Cost of
Sales
|
18,647
|
|
|
17,545
|
|
|
6.3
|
|
|
34,380
|
|
|
32,516
|
|
|
5.7
|
|
GROSS
PROFIT
|
9,461
|
|
|
8,927
|
|
|
6.0
|
|
|
17,615
|
|
|
16,718
|
|
|
5.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Selling, General and
Administrative
|
4,549
|
|
|
4,388
|
|
|
3.7
|
|
|
8,910
|
|
|
8,669
|
|
|
2.8
|
|
Depreciation and
Amortization
|
449
|
|
|
436
|
|
|
3.0
|
|
|
893
|
|
|
869
|
|
|
2.8
|
|
Total Operating
Expenses
|
4,998
|
|
|
4,824
|
|
|
3.6
|
|
|
9,803
|
|
|
9,538
|
|
|
2.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
4,463
|
|
|
4,103
|
|
|
8.8
|
|
|
7,812
|
|
|
7,180
|
|
|
8.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and Other
(Income) Expense:
|
|
|
|
|
|
|
|
|
|
|
|
Interest and
Investment Income
|
(16)
|
|
|
(8)
|
|
|
100.0
|
|
|
(29)
|
|
|
(15)
|
|
|
93.3
|
|
Interest
Expense
|
265
|
|
|
236
|
|
|
12.3
|
|
|
519
|
|
|
480
|
|
|
8.1
|
|
Interest and Other,
net
|
249
|
|
|
228
|
|
|
9.2
|
|
|
490
|
|
|
465
|
|
|
5.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS BEFORE
PROVISION FOR
INCOME TAXES
|
4,214
|
|
|
3,875
|
|
|
8.7
|
|
|
7,322
|
|
|
6,715
|
|
|
9.0
|
|
Provision for Income
Taxes
|
1,542
|
|
|
1,434
|
|
|
7.5
|
|
|
2,636
|
|
|
2,471
|
|
|
6.7
|
|
NET
EARNINGS
|
$
|
2,672
|
|
|
$
|
2,441
|
|
|
9.5
|
%
|
|
$
|
4,686
|
|
|
$
|
4,244
|
|
|
10.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Weighted
Average Common Shares
|
1,183
|
|
|
1,235
|
|
|
(4.2)
|
%
|
|
1,191
|
|
|
1,242
|
|
|
(4.1)
|
%
|
BASIC EARNINGS PER
SHARE
|
$
|
2.26
|
|
|
$
|
1.98
|
|
|
14.1
|
|
|
$
|
3.93
|
|
|
$
|
3.42
|
|
|
14.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Common Shares
|
1,189
|
|
|
1,240
|
|
|
(4.1)
|
%
|
|
1,197
|
|
|
1,247
|
|
|
(4.0)
|
%
|
DILUTED EARNINGS
PER SHARE
|
$
|
2.25
|
|
|
$
|
1.97
|
|
|
14.2
|
|
|
$
|
3.91
|
|
|
$
|
3.40
|
|
|
15.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
SELECTED SALES
DATA(1)
|
July 30,
2017
|
|
July 31,
2016
|
|
% Increase
(Decrease)
|
|
July 30,
2017
|
|
July 31,
2016
|
|
%
Increase
(Decrease)
|
Number of Customer
Transactions
|
441.8
|
|
|
430.0
|
|
|
2.8
|
%
|
|
822.6
|
|
|
804.8
|
|
|
2.2
|
%
|
Average Ticket
(actual)
|
$
|
63.05
|
|
|
$
|
60.87
|
|
|
3.6
|
|
|
$
|
62.74
|
|
|
$
|
60.48
|
|
|
3.7
|
|
Sales per Square Foot
(actual)
|
$
|
464.38
|
|
|
$
|
438.61
|
|
|
5.9
|
|
|
$
|
429.17
|
|
|
$
|
407.64
|
|
|
5.3
|
|
|
—————
|
(1)
Selected Sales Data does not include results for Interline
Brands, Inc., which was acquired in the third quarter of fiscal
2015.
|
THE HOME DEPOT,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
AS OF
JULY 30, 2017, JULY 31, 2016 AND JANUARY 29,
2017
|
(Unaudited)
|
|
amounts in
millions
|
July 30,
2017
|
|
July 31,
2016
|
|
January 29,
2017
|
ASSETS
|
|
|
|
|
|
Cash and Cash
Equivalents
|
$
|
4,830
|
|
|
$
|
4,018
|
|
|
$
|
2,538
|
|
Receivables,
net
|
2,187
|
|
|
1,995
|
|
|
2,029
|
|
Merchandise
Inventories
|
12,868
|
|
|
12,323
|
|
|
12,549
|
|
Other Current
Assets
|
626
|
|
|
605
|
|
|
608
|
|
Total Current
Assets
|
20,511
|
|
|
18,941
|
|
|
17,724
|
|
Net Property and
Equipment
|
22,035
|
|
|
21,975
|
|
|
21,914
|
|
Goodwill
|
2,235
|
|
|
2,106
|
|
|
2,093
|
|
Other
Assets
|
1,178
|
|
|
1,225
|
|
|
1,235
|
|
TOTAL
ASSETS
|
$
|
45,959
|
|
|
$
|
44,247
|
|
|
$
|
42,966
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Short-Term
Debt
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
710
|
|
Accounts
Payable
|
8,541
|
|
|
8,273
|
|
|
7,000
|
|
Accrued Salaries and
Related Expenses
|
1,503
|
|
|
1,453
|
|
|
1,484
|
|
Current Installments
of Long-Term Debt
|
545
|
|
|
43
|
|
|
542
|
|
Other Current
Liabilities
|
5,234
|
|
|
4,756
|
|
|
4,397
|
|
Total Current
Liabilities
|
15,823
|
|
|
14,525
|
|
|
14,133
|
|
Long-Term Debt,
excluding current installments
|
24,422
|
|
|
20,900
|
|
|
22,349
|
|
Other
Liabilities
|
2,160
|
|
|
2,165
|
|
|
2,151
|
|
Total
Liabilities
|
42,405
|
|
|
37,590
|
|
|
38,633
|
|
Total Stockholders'
Equity
|
3,554
|
|
|
6,657
|
|
|
4,333
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
|
45,959
|
|
|
$
|
44,247
|
|
|
$
|
42,966
|
|
THE HOME DEPOT,
INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
FOR THE SIX MONTHS
ENDED JULY 30, 2017 AND JULY 31, 2016
|
(Unaudited)
|
|
|
Six Months
Ended
|
amounts in
millions
|
July 30,
2017
|
|
July 31,
2016
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
Net
Earnings
|
$
|
4,686
|
|
|
$
|
4,244
|
|
Reconciliation of Net
Earnings to Net Cash Provided by Operating Activities:
|
|
|
|
Depreciation and
Amortization
|
1,015
|
|
|
978
|
|
Stock-Based
Compensation Expense
|
148
|
|
|
133
|
|
Changes in Working
Capital and Other, net of the effects of acquisitions
|
2,013
|
|
|
1,522
|
|
Net Cash Provided by
Operating Activities
|
7,862
|
|
|
6,877
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
Capital
Expenditures
|
(846)
|
|
|
(697)
|
|
Payments for Business
Acquired, net
|
(268)
|
|
|
—
|
|
Proceeds from Sales
of Property and Equipment
|
23
|
|
|
23
|
|
Net Cash Used in
Investing Activities
|
(1,091)
|
|
|
(674)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
Repayments of
Short-Term Debt, net
|
(710)
|
|
|
(350)
|
|
Proceeds from
Long-Term Debt, net of discounts
|
1,994
|
|
|
2,989
|
|
Repayments of
Long-Term Debt
|
(21)
|
|
|
(3,023)
|
|
Repurchases of Common
Stock
|
(3,921)
|
|
|
(2,441)
|
|
Proceeds from Sales
of Common Stock
|
137
|
|
|
121
|
|
Cash Dividends Paid
to Stockholders
|
(2,130)
|
|
|
(1,718)
|
|
Other Financing
Activities
|
2
|
|
|
1
|
|
Net Cash Used in
Financing Activities
|
(4,649)
|
|
|
(4,421)
|
|
Change in Cash and
Cash Equivalents
|
2,122
|
|
|
1,782
|
|
Effect of Exchange
Rate Changes on Cash and Cash Equivalents
|
170
|
|
|
20
|
|
Cash and Cash
Equivalents at Beginning of Period
|
2,538
|
|
|
2,216
|
|
Cash and Cash
Equivalents at End of Period
|
$
|
4,830
|
|
|
$
|
4,018
|
|
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SOURCE The Home Depot