February 21, 2023
(press release)
–
Fourth Quarter 2022 Sales for the fourth quarter of fiscal 2022 were
Net earnings for the fourth quarter of fiscal 2022 were
Fiscal 2022 Sales for fiscal 2022 were
Net earnings for fiscal 2022 were
"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
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
"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
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: 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
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. Three Months Ended Fiscal Year Ended in millions, except per share data January 29, January 30, % Change January 29, January 30, % Change Net sales $ 35,831 $ 35,719 0.3 %
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, January 30, % Change January 29, January 30, % 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. in millions January 29, January 30, 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. Fiscal Year Ended in millions January 29, January 30, 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 SOURCE The Home Depot
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
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CONDENSED CONSOLIDATED BALANCE SHEETS
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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