February 20, 2024
(press release)
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Fourth Quarter 2023 Sales for the fourth quarter of fiscal 2023 were
Net earnings for the fourth quarter of fiscal 2023 were
Fiscal 2023 Sales for fiscal 2023 were
Net earnings for fiscal 2023 were
"After three years of exceptional growth for our business, 2023 was a year of moderation," said Ted Decker, chair, president, and CEO. "During fiscal 2023, we focused on several initiatives to strengthen the business while also staying true to our strategic investments of creating the best interconnected experience, growing our pro wallet share through our unique ecosystem of capabilities, and building new stores. We remain excited about the future for home improvement and our ability to grow share in our large and fragmented market, which we estimate to be over
Dividend Declaration The Company today announced that its board of directors approved a 7.7% increase in its quarterly dividend to
The dividend is payable on March 21, 2024, to shareholders of record on the close of business on March 7, 2024. This is the 148th consecutive quarter the Company has paid a cash dividend. Fiscal 2024 Guidance The company will have 53 weeks of operating results in fiscal 2024 and provides the following guidance for fiscal 2024: 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 2,335 retail stores in all 50 states, the
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, 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 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 29, 2023 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 28, January 29, % Change January 28, January 29, % Change Net sales $ 34,786 $ 35,831 (2.9) %
(3.0) % Cost of sales 23,278 23,905 (2.6) 101,709 104,625 (2.8) Gross profit 11,508 11,926 (3.5) 50,960 52,778 (3.4) Operating expenses: Selling, general and administrative 6,679 6,549 2.0 26,598 26,284 1.2 Depreciation and amortization 686 625 9.8 2,673 2,455 8.9 Total operating expenses 7,365 7,174 2.7 29,271 28,739 1.9 Operating income 4,143 4,752 (12.8) 21,689 24,039 (9.8) Interest and other (income) expense: Interest income and other, net (55) (43) 27.9 (178) (55) N/M Interest expense 513 451 13.7 1,943 1,617 20.2 Interest and other, net 458 408 12.3 1,765 1,562 13.0 Earnings before provision for income taxes 3,685 4,344 (15.2) 19,924 22,477 (11.4) Provision for income taxes 884 982 (10.0) 4,781 5,372 (11.0) Net earnings $ 2,801 $ 3,362 (16.7) % $ 15,143 $ 17,105 (11.5) % Basic weighted average common shares 991 1,015 (2.4) % 999 1,022 (2.3) % Basic earnings per share $ 2.83 $ 3.31 (14.5) $ 15.16 $ 16.74 (9.4) Diluted weighted average common shares 994 1,018 (2.4) % 1,002 1,025 (2.2) % Diluted earnings per share $ 2.82 $ 3.30 (14.5) $ 15.11 $ 16.69 (9.5) Three Months Ended Fiscal Year Ended Selected Sales Data (1) January 28, January 29, % Change January 28, January 29, % Change Customer transactions (in millions) 372.0 378.5 (1.7) % 1,621.8 1,666.4 (2.7) % Average ticket $ 88.87 $ 90.05 (1.3) $ 90.07 $ 90.36 (0.3) Sales per retail square foot $ 550.50 $ 571.15 (3.6) $ 604.55 $ 627.17 (3.6) (1) Selected Sales Data does not include results for HD Supply. THE HOME DEPOT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) in millions January 28, January 29, Assets Current assets: Cash and cash equivalents $ 3,760 $ 2,757 Receivables, net 3,328 3,317 Merchandise inventories 20,976 24,886 Other current assets 1,711 1,511 Total current assets 29,775 32,471 Net property and equipment 26,154 25,631 Operating lease right-of-use assets 7,884 6,941 Goodwill 8,455 7,444 Other assets 4,262 3,958 Total assets $ 76,530 $ 76,445 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 10,037 $ 11,443 Accrued salaries and related expenses 2,096 1,991 Current installments of long-term debt 1,368 1,231 Current operating lease liabilities 1,050 945 Other current liabilities 7,464 7,500 Total current liabilities 22,015 23,110 Long-term debt, excluding current installments 42,743 41,962 Long-term operating lease liabilities 7,082 6,226 Other long-term liabilities 3,646 3,585 Total liabilities 75,486 74,883 Total stockholders' equity 1,044 1,562 Total liabilities and stockholders' equity $ 76,530 $ 76,445 THE HOME DEPOT, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Fiscal Year Ended in millions January 28, January 29, Cash Flows from Operating Activities: Net earnings $ 15,143 $ 17,105 Reconciliation of net earnings to net cash provided by operating activities: Depreciation and amortization 3,247 2,975 Stock-based compensation expense 380 366 Changes in working capital 2,333 (6,240) Changes in deferred income taxes (245) 138 Other operating activities 314 271 Net cash provided by operating activities 21,172 14,615 Cash Flows from Investing Activities: Capital expenditures (3,226) (3,119) Payments for businesses acquired, net (1,514) — Other investing activities 11 (21) Net cash used in investing activities (4,729) (3,140) Cash Flows from Financing Activities: Repayments of short-term debt, net — (1,035) Proceeds from long-term debt, net of discounts 1,995 6,942 Repayments of long-term debt (1,271) (2,491) Repurchases of common stock (7,951) (6,696) Proceeds from sales of common stock 323 264 Cash dividends (8,383) (7,789) Other financing activities (156) (188) Net cash used in financing activities (15,443) (10,993) Change in cash and cash equivalents 1,000 482 Effect of exchange rate changes on cash and cash equivalents 3 (68) Cash and cash equivalents at beginning of period 2,757 2,343 Cash and cash equivalents at end of period $ 3,760 $ 2,757 View original content to download multimedia:https://www.prnewswire.com/news-releases/the-home-depot-announces-fourth-quarter-and-fiscal-2023-results-increases-quarterly-dividend-by-7-7-provides-fiscal-2024-guidance-302065527.html SOURCE The Home Depot
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