ATLANTA, May 17, 2022
/PRNewswire/ -- The Home Depot®, the world's largest
home improvement retailer, today reported sales of $38.9 billion for the first quarter of fiscal
2022, an increase of $1.4 billion, or
3.8 percent from the first quarter of fiscal 2021. Comparable sales
for the first quarter of fiscal 2022 increased 2.2 percent, and
comparable sales in the U.S. increased 1.7 percent.
Net earnings for the first quarter of fiscal 2022 were
$4.2 billion, or $4.09 per diluted share, compared with net
earnings of $4.1 billion, or
$3.86 per diluted share, in the same
period of fiscal 2021, representing a 6.0 percent increase in
diluted earnings per share.
"Fiscal 2022 is off to a strong start as we delivered the
highest first quarter sales in Company history," said Ted Decker, CEO and president. "The solid
performance in the quarter is even more impressive as we were
comparing against last year's historic growth and faced a slower
start to spring this year. These results are a direct reflection of
our associates' continued ability to effectively navigate a
challenging and dynamic environment. I would like to thank them and
our many partners for their hard work and dedication to our
customers."
Fiscal 2022 Guidance
The Company raised fiscal 2022 guidance and now expects:
- Total sales growth and comparable sales growth of approximately
3.0 percent
- Operating margin of approximately 15.4 percent
- Net interest expense of approximately $1.6 billion
- Tax rate of approximately 24.6 percent
- Diluted earnings-per-share-percent-growth 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 first quarter, the Company operated a total of
2,316 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
500,000 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 impact of the COVID-19 pandemic
and the related recovery on our business, results of operations,
cash flows and financial condition (which, among other things, may
affect many of the items listed below); 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; 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 pandemics and
quarantines, related shut-downs and other governmental orders, and
similar restrictions, as well as subsequent re-openings),
cybersecurity events, military conflicts or acts of war, and other
business interruptions that could 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, the Company's products or services;
our ability to meet environmental, social and governance (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; stock-based compensation expense; 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 effect of
accounting charges; the effect of adopting certain accounting
standards; the impact of regulatory changes, including changes to
tax laws and regulations; store openings and closures; guidance for
fiscal 2022 and beyond; financial outlook; and the impact of
acquired companies on our organization and the ability to recognize
the anticipated 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, dependent on
the actions of third parties, or are 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 may be described from time to time in future
reports we file with the Securities and Exchange Commission (SEC).
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 SEC
and in our other public statements.
THE HOME DEPOT,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
|
|
|
Three Months Ended
|
|
|
in millions, except per share
data
|
May 1, 2022
|
|
May 2, 2021
|
|
% Change
|
Net sales
|
$
38,908
|
|
$
37,500
|
|
3.8 %
|
Cost of
sales
|
25,763
|
|
24,758
|
|
4.1
|
Gross
profit
|
13,145
|
|
12,742
|
|
3.2
|
Operating
expenses:
|
|
|
|
|
|
Selling,
general and administrative
|
6,610
|
|
6,374
|
|
3.7
|
Depreciation and amortization
|
606
|
|
587
|
|
3.2
|
Total operating expenses
|
7,216
|
|
6,961
|
|
3.7
|
Operating
income
|
5,929
|
|
5,781
|
|
2.6
|
Interest and other
(income) expense:
|
|
|
|
|
|
Interest
income and other, net
|
(3)
|
|
(6)
|
|
(50.0)
|
Interest
expense
|
372
|
|
339
|
|
9.7
|
Interest and other, net
|
369
|
|
333
|
|
10.8
|
Earnings before
provision for income taxes
|
5,560
|
|
5,448
|
|
2.1
|
Provision for income
taxes
|
1,329
|
|
1,303
|
|
2.0
|
Net earnings
|
$
4,231
|
|
$
4,145
|
|
2.1 %
|
|
|
|
|
|
|
Basic weighted average
common shares
|
1,030
|
|
1,071
|
|
(3.8) %
|
Basic earnings per
share
|
$
4.11
|
|
$
3.87
|
|
6.2
|
|
|
|
|
|
|
Diluted weighted
average common shares
|
1,034
|
|
1,075
|
|
(3.8) %
|
Diluted earnings per
share
|
$
4.09
|
|
$
3.86
|
|
6.0
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Selected Sales Data (1)
|
May 1,
2022
|
|
May 2,
2021
|
|
% Change
|
Customer transactions
(in millions)
|
410.7
|
|
447.2
|
|
(8.2) %
|
Average
ticket
|
$
91.72
|
|
$
82.37
|
|
11.4
|
Sales per retail square
foot
|
$
621.99
|
|
$
605.60
|
|
2.7
|
—————
|
(1) Selected Sales Data does not
include results for HD Supply.
|
THE HOME DEPOT,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
in millions
|
May 1,
2022
|
|
May 2,
2021
|
|
January 30,
2022
|
Assets
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and
cash equivalents
|
$
2,844
|
|
$
6,648
|
|
$
2,343
|
Receivables, net
|
3,936
|
|
3,624
|
|
3,426
|
Merchandise inventories
|
25,297
|
|
19,178
|
|
22,068
|
Other
current assets
|
1,790
|
|
1,222
|
|
1,218
|
Total current assets
|
33,867
|
|
30,672
|
|
29,055
|
Net property and
equipment
|
25,166
|
|
24,673
|
|
25,199
|
Operating lease
right-of-use assets
|
5,980
|
|
5,864
|
|
5,968
|
Goodwill
|
7,450
|
|
7,137
|
|
7,449
|
Other assets
|
4,104
|
|
4,221
|
|
4,205
|
Total assets
|
$
76,567
|
|
$
72,567
|
|
$
71,876
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term debt
|
$
—
|
|
$
—
|
|
$
1,035
|
Accounts
payable
|
15,367
|
|
14,494
|
|
13,462
|
Accrued
salaries and related expenses
|
2,008
|
|
2,167
|
|
2,426
|
Current
installments of long-term debt
|
2,463
|
|
1,164
|
|
2,447
|
Current
operating lease liabilities
|
859
|
|
803
|
|
830
|
Other
current liabilities
|
9,690
|
|
9,130
|
|
8,493
|
Total current liabilities
|
30,387
|
|
27,758
|
|
28,693
|
Long-term debt,
excluding current installments
|
39,158
|
|
34,697
|
|
36,604
|
Long-term operating
lease liabilities
|
5,335
|
|
5,279
|
|
5,353
|
Other long-term
liabilities
|
3,396
|
|
3,085
|
|
2,922
|
Total liabilities
|
78,276
|
|
70,819
|
|
73,572
|
Total stockholders'
(deficit) equity
|
(1,709)
|
|
1,748
|
|
(1,696)
|
Total liabilities and stockholders'
equity
|
$
76,567
|
|
$
72,567
|
|
$
71,876
|
THE HOME DEPOT,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Three Months Ended
|
in millions
|
May 1,
2022
|
|
May 2,
2021
|
Cash Flows from Operating
Activities:
|
|
|
|
Net earnings
|
$
4,231
|
|
$
4,145
|
Reconciliation of net
earnings to net cash provided by operating activities:
|
|
|
|
Depreciation and amortization
|
727
|
|
703
|
Stock-based compensation expense
|
115
|
|
146
|
Changes
in working capital
|
(1,360)
|
|
1,301
|
Changes
in deferred income taxes
|
(44)
|
|
(87)
|
Other
operating activities
|
120
|
|
102
|
Net cash provided by
operating activities
|
3,789
|
|
6,310
|
|
|
|
|
Cash Flows from Investing
Activities:
|
|
|
|
Capital
expenditures
|
(704)
|
|
(524)
|
Other investing
activities
|
3
|
|
(4)
|
Net cash
used in investing activities
|
(701)
|
|
(528)
|
|
|
|
|
Cash Flows from Financing
Activities:
|
|
|
|
Repayments of
short-term debt, net
|
(1,035)
|
|
—
|
Proceeds from long-term
debt, net of discounts
|
3,957
|
|
—
|
Repayments of long-term
debt
|
(1,054)
|
|
(1,390)
|
Repurchases of common
stock
|
(2,308)
|
|
(3,788)
|
Proceeds from sales of
common stock
|
5
|
|
13
|
Cash
dividends
|
(1,962)
|
|
(1,775)
|
Other financing
activities
|
(182)
|
|
(130)
|
Net cash
used in financing activities
|
(2,579)
|
|
(7,070)
|
Change in cash and cash
equivalents
|
509
|
|
(1,288)
|
Effect of exchange rate
changes on cash and cash equivalents
|
(8)
|
|
41
|
Cash and cash
equivalents at beginning of period
|
2,343
|
|
7,895
|
Cash and
cash equivalents at end of period
|
$
2,844
|
|
$
6,648
|
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SOURCE The Home Depot