The Home Depot Announces Third Quarter Fiscal 2024 Results; Updates Fiscal 2024 Guidance
Home Depot reported Q3 fiscal 2024 sales of $40.2 billion, up 6.6% year-over-year, despite comparable sales declining 1.3%. Operating income was $5.4 billion with a 13.5% margin, while net earnings were $3.6 billion ($3.67 per diluted share). The company updated its fiscal 2024 guidance, projecting total sales to increase approximately 4% but comparable sales to decline 2.5%. The 53rd week is expected to add $2.3 billion to total sales and contribute $0.30 to earnings per share. Home Depot operates 2,345 retail stores and over 780 branches across North America.
Home Depot ha riportato vendite per il terzo trimestre dell'anno fiscale 2024 pari a 40,2 miliardi di dollari, in aumento del 6,6% rispetto all'anno precedente, nonostante le vendite comparabili siano scese dell'1,3%. Il reddito operativo è stato di 5,4 miliardi di dollari con un margine del 13,5%, mentre gli utili netti ammontano a 3,6 miliardi di dollari (3,67 dollari per azione diluita). L'azienda ha aggiornato le previsioni per l'anno fiscale 2024, prevedendo un aumento totale delle vendite di circa il 4%, ma una diminuzione delle vendite comparabili del 2,5%. Si prevede che la 53esima settimana aggiunga 2,3 miliardi di dollari alle vendite totali e contribuisca con 0,30 dollari agli utili per azione. Home Depot opera 2.345 punti vendita e oltre 780 filiali in Nord America.
Home Depot reportó ventas de 40.2 mil millones de dólares para el tercer trimestre del año fiscal 2024, un aumento del 6.6% en comparación con el año anterior, a pesar de que las ventas comparables cayeron un 1.3%. Los ingresos operativos fueron de 5.4 mil millones de dólares con un margen del 13.5%, mientras que las ganancias netas fueron de 3.6 mil millones de dólares (3.67 dólares por acción diluida). La compañía actualizó su guía para el año fiscal 2024, proyectando que las ventas totales aumenten aproximadamente un 4%, pero que las ventas comparables disminuyan un 2.5%. Se espera que la 53ª semana agregue 2.3 mil millones de dólares a las ventas totales y contribuya con 0.30 dólares a las ganancias por acción. Home Depot opera 2,345 tiendas y más de 780 sucursales en América del Norte.
홈디포는 2024 회계 연도 3분기 매출이 402억 달러에 달해 지난해 대비 6.6% 증가했다고 보고했습니다. 그러나 동기간 비교 매출은 1.3% 감소했습니다. 운영 수익은 54억 달러로, 마진은 13.5%였으며, 순 이익은 36억 달러(희석 주당 3.67달러)였습니다. 회사는 2024 회계 연도 전망을 업데이트하며 총 매출은 약 4% 증가할 것으로 예상하는 반면, 비교 매출은 2.5% 감소할 것으로 보입니다. 53주 차는 총 매출에 23억 달러를 추가하고 주당 0.30달러의 이익에 기여할 것으로 예상됩니다. 홈디포는 북미 전역에 2,345개의 소매점을 운영하고 있으며 780개 이상의 지점을 두고 있습니다.
Home Depot a annoncé un chiffre d'affaires de 40,2 milliards de dollars pour le troisième trimestre de l'exercice 2024, en hausse de 6,6 % par rapport à l'année précédente, bien que les ventes comparables aient diminué de 1,3 %. Le résultat d'exploitation s'élevait à 5,4 milliards de dollars avec une marge de 13,5 %, tandis que le bénéfice net était de 3,6 milliards de dollars (3,67 dollars par action diluée). L'entreprise a mis à jour ses prévisions pour l'exercice 2024, prévoyant que le chiffre d'affaires total augmente d'environ 4 %, tandis que les ventes comparables devraient diminuer de 2,5 %. La 53e semaine devrait ajouter 2,3 milliards de dollars au chiffre d'affaires total et contribuer à 0,30 dollar aux bénéfices par action. Home Depot possède 2 345 magasins de détail et plus de 780 succursales à travers l'Amérique du Nord.
Home Depot meldete für das dritte Quartal des Geschäftsjahres 2024 einen Umsatz von 40,2 Milliarden Dollar, was einem Anstieg von 6,6% im Vergleich zum Vorjahr entspricht, obwohl die vergleichbaren Umsätze um 1,3% gesunken sind. Das Betriebsergebnis betrug 5,4 Milliarden Dollar bei einer Marge von 13,5%, während der Nettogewinn 3,6 Milliarden Dollar (3,67 Dollar pro verwässerter Aktie) betrug. Das Unternehmen hat seine Prognose für das Geschäftsjahr 2024 aktualisiert und erwartet, dass der Gesamtumsatz um etwa 4% steigt, während die vergleichbaren Umsätze um 2,5% zurückgehen sollen. Die 53. Woche wird voraussichtlich 2,3 Milliarden Dollar zum Gesamtumsatz beitragen und 0,30 Dollar zum Gewinn pro Aktie beitragen. Home Depot betreibt 2.345 Einzelhandelsgeschäfte und über 780 Filialen in Nordamerika.
- Total sales increased 6.6% to $40.2 billion in Q3
- Adjusted operating income rose to $5.6 billion from $5.5 billion YoY
- 53rd week expected to add $2.3 billion to total sales
- SRS expected to contribute $6.4 billion in incremental sales
- Comparable sales decreased 1.3% in Q3
- Operating margin declined to 13.5% from 14.3% YoY
- Net earnings decreased to $3.6 billion from $3.8 billion YoY
- Projected 2.5% decline in comparable sales for fiscal 2024
- 53-week diluted EPS expected to decline approximately 2% from fiscal 2023
Insights
Home Depot's Q3 FY2024 results present a mixed picture. While total sales increased
The updated guidance signals continued headwinds, with comparable sales expected to decline
The results reflect broader market dynamics affecting the home improvement sector. Weather normalization and hurricane-related demand provided some uplift, but macroeconomic uncertainties continue to impact consumer spending patterns. The
The company's strategic focus on maintaining operational efficiency is evident in the relatively stable adjusted operating margin at
Operating income for the third quarter of fiscal 2024 was
Adjusted(1) operating income for the third quarter of fiscal 2024 was
Net earnings for the third quarter of fiscal 2024 were
Adjusted(1) diluted earnings per share for the third quarter of fiscal 2024 were
"While macroeconomic uncertainty remains, our third quarter performance exceeded our expectations," said Ted Decker, chair, president and CEO. "As weather normalized, we saw better engagement across seasonal goods and certain outdoor projects as well as incremental sales related to hurricane demand. I would like to thank all of our associates for their dedication in serving our customers and communities."
(1) | The Company reports its financial results in accordance with |
Fiscal 2024 Guidance
The company updated its fiscal 2024 guidance, which includes 53 weeks of operating results:
- Total sales to increase approximately
4% including SRS and the 53rd week- 53rd week projected to add approximately
to total sales$2.3 billion - SRS expected to contribute approximately
in incremental sales$6.4 billion
- 53rd week projected to add approximately
- Comparable sales to decline approximately
2.5% for the 52-week period compared to fiscal 2023 - Approximately 12 new stores
- Gross margin of approximately
33.5% - Operating margin of approximately
13.5% - Adjusted(1) operating margin of approximately
13.8% - Tax rate of approximately
24% - Net interest expense of approximately
$2.1 billion - 53-week diluted earnings-per-share to decline approximately
2% from in fiscal 2023$15.11 - 53rd week expected to contribute approximately
of diluted earnings per share compared to fiscal 2023$0.30
- 53rd week expected to contribute approximately
- 53-week adjusted(1) diluted earnings-per-share to decline approximately
1% from in fiscal 2023$15.25 - 53rd week expected to contribute approximately
of adjusted diluted earnings per share compared to fiscal 2023$0.30
- 53rd week expected to contribute approximately
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 third quarter, the company operated a total of 2,345 retail stores and over 780 branches across all 50 states, the
Cautionary Note Regarding Forward-Looking Statements
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, labor disputes, 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, including SRS, 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 28, 2024 and also as described from time to time in reports subsequently filed 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.
Non-GAAP Financial Measures
These statements are also supplemented with certain non-GAAP financial measures. When used in conjunction with our GAAP financial measures, we believe these supplemental non-GAAP financial measures will help management and investors to better understand and analyze our performance. However, this supplemental information should not be considered in isolation or as a substitute for the related GAAP measures. Refer to the end of this release for an explanation and definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures.
THE HOME DEPOT, INC. | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
in millions, except per share data | October 27, | October 29, | % Change | October 27, | October 29, | % Change | |||||
Net sales | $ 40,217 | $ 37,710 | 6.6 % | 1.6 % | |||||||
Cost of sales | 26,792 | 24,972 | 7.3 | 79,536 | 78,431 | 1.4 | |||||
Gross profit | 13,425 | 12,738 | 5.4 | 40,274 | 39,452 | 2.1 | |||||
Operating expenses: | |||||||||||
Selling, general and administrative | 7,212 | 6,649 | 8.5 | 21,023 | 19,919 | 5.5 | |||||
Depreciation and amortization | 795 | 683 | 16.4 | 2,220 | 1,987 | 11.7 | |||||
Total operating expenses | 8,007 | 7,332 | 9.2 | 23,243 | 21,906 | 6.1 | |||||
Operating income | 5,418 | 5,406 | 0.2 | 17,031 | 17,546 | (2.9) | |||||
Interest and other (income) expense: | |||||||||||
Interest income and other, net | (30) | (49) | (38.8) | (171) | (123) | 39.0 | |||||
Interest expense | 625 | 487 | 28.3 | 1,683 | 1,430 | 17.7 | |||||
Interest and other, net | 595 | 438 | 35.8 | 1,512 | 1,307 | 15.7 | |||||
Earnings before provision for income taxes | 4,823 | 4,968 | (2.9) | 15,519 | 16,239 | (4.4) | |||||
Provision for income taxes | 1,175 | 1,158 | 1.5 | 3,710 | 3,897 | (4.8) | |||||
Net earnings | $ 3,648 | $ 3,810 | (4.3) % | $ 11,809 | $ 12,342 | (4.3) % | |||||
Basic weighted average common shares | 991 | 996 | (0.5) % | 990 | 1,002 | (1.2) % | |||||
Basic earnings per share | $ 3.68 | $ 3.83 | (3.9) | $ 11.93 | $ 12.32 | (3.2) | |||||
Diluted weighted average common shares | 993 | 999 | (0.6) % | 992 | 1,005 | (1.3) % | |||||
Diluted earnings per share | $ 3.67 | $ 3.81 | (3.7) | $ 11.90 | $ 12.28 | (3.1) | |||||
Three Months Ended | Nine Months Ended | ||||||||||
Selected Sales Data (1) | October 27, | October 29, | % Change | October 27, | October 29, | % Change | |||||
Customer transactions (in millions) | 399.0 | 399.8 | (0.2) % | 1,236.8 | 1,249.8 | (1.0) % | |||||
Average ticket | $ 88.65 | $ 89.36 | (0.8) | $ 89.38 | $ 90.42 | (1.2) | |||||
Sales per retail square foot | $ 582.97 | $ 595.71 | (2.1) | $ 604.11 | $ 623.17 | (3.1) |
(1) | Selected Sales Data does not include results for HD Supply or SRS. At this time, we are still evaluating whether SRS results |
THE HOME DEPOT, INC. | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(Unaudited) | |||||
in millions | October 27, | October 29, | January 28, | ||
Assets | |||||
Current assets: | |||||
Cash and cash equivalents | $ 1,531 | $ 2,058 | $ 3,760 | ||
Receivables, net | 5,782 | 3,932 | 3,328 | ||
Merchandise inventories | 23,897 | 22,805 | 20,976 | ||
Other current assets | 1,739 | 1,887 | 1,711 | ||
Total current assets | 32,949 | 30,682 | 29,775 | ||
Net property and equipment | 26,573 | 25,735 | 26,154 | ||
Operating lease right-of-use assets | 8,521 | 7,071 | 7,884 | ||
Goodwill | 19,428 | 7,937 | 8,455 | ||
Intangible assets, net | 9,112 | 3,497 | 3,606 | ||
Other assets | 681 | 655 | 656 | ||
Total assets | $ 97,264 | $ 75,577 | $ 76,530 | ||
Liabilities and Stockholders' Equity | |||||
Current liabilities: | |||||
Short-term debt | $ 1,344 | $ — | $ — | ||
Accounts payable | 13,506 | 11,478 | 10,037 | ||
Accrued salaries and related expenses | 2,094 | 2,034 | 2,096 | ||
Current installments of long-term debt | 3,176 | 1,362 | 1,368 | ||
Current operating lease liabilities | 1,262 | 1,026 | 1,050 | ||
Other current liabilities | 7,710 | 7,672 | 7,464 | ||
Total current liabilities | 29,092 | 23,572 | 22,015 | ||
Long-term debt, excluding current installments | 50,058 | 40,567 | 42,743 | ||
Long-term operating lease liabilities | 7,538 | 6,300 | 7,082 | ||
Other long-term liabilities | 4,790 | 3,708 | 3,646 | ||
Total liabilities | 91,478 | 74,147 | 75,486 | ||
Total stockholders' equity | 5,786 | 1,430 | 1,044 | ||
Total liabilities and stockholders' equity | $ 97,264 | $ 75,577 | $ 76,530 |
THE HOME DEPOT, INC. | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(Unaudited) | |||
Nine Months Ended | |||
in millions | October 27, | October 29, | |
Cash Flows from Operating Activities: | |||
Net earnings | $ 11,809 | $ 12,342 | |
Reconciliation of net earnings to net cash provided by operating activities: | |||
Depreciation and amortization, excluding amortization of intangible assets | 2,472 | 2,279 | |
Intangible asset amortization | 280 | 136 | |
Stock-based compensation expense | 328 | 300 | |
Changes in working capital | 84 | 1,391 | |
Changes in deferred income taxes | 170 | (310) | |
Other operating activities | (4) | 301 | |
Net cash provided by operating activities | 15,139 | 16,439 | |
Cash Flows from Investing Activities: | |||
Capital expenditures | (2,384) | (2,368) | |
Payments for businesses acquired, net | (17,613) | (795) | |
Other investing activities | 85 | 15 | |
Net cash used in investing activities | (19,912) | (3,148) | |
Cash Flows from Financing Activities: | |||
Proceeds from short-term debt, net | 1,344 | — | |
Proceeds from long-term debt, net of discounts | 9,983 | — | |
Repayments of long-term debt | (1,355) | (1,200) | |
Repurchases of common stock | (649) | (6,465) | |
Proceeds from sales of common stock | 231 | 192 | |
Cash dividends | (6,694) | (6,304) | |
Other financing activities | (223) | (146) | |
Net cash provided by (used in) financing activities | 2,637 | (13,923) | |
Change in cash and cash equivalents | (2,136) | (632) | |
Effect of exchange rate changes on cash and cash equivalents | (93) | (67) | |
Cash and cash equivalents at beginning of period | 3,760 | 2,757 | |
Cash and cash equivalents at end of period | $ 1,531 | $ 2,058 |
NON-GAAP FINANCIAL MEASURES
Adjusted operating income, adjusted operating margin (calculated as adjusted operating income divided by total net sales), and adjusted diluted earnings per share are presented as supplemental financial measures in the evaluation of our business that are not required by or presented in accordance with GAAP. The Company excludes the impact of amortization expense from acquired intangible assets from adjusted operating income and adjusted operating margin, and the impact of amortization expense from acquired intangible assets, including the related tax effects, from adjusted diluted earnings per share. We do not adjust for the revenue that is generated in part from the use of our acquired intangible assets. Amortization expense, unlike the related revenue, is not affected by operations in any particular period unless an intangible asset becomes impaired, or the useful life of an intangible asset is revised.
When used in conjunction with our GAAP results, we believe these non-GAAP measures provide investors with meaningful supplemental measures of our performance period to period, make it easier for investors to compare our underlying business performance to peers, and align to how management analyzes trends and evaluates performance internally. The Company provides non-GAAP financial information on this basis to facilitate comparability when we report earnings results. These non-GAAP measures should not be a substitute for their comparable GAAP financial measures. Investors should rely primarily on our GAAP results and use non-GAAP financial measures only supplementally in making investment decisions. Our calculation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies and other companies may not define these non-GAAP financial measures in the same way, which may limit their usefulness as comparative measures.
RECONCILIATION OF ADJUSTED OPERATING INCOME AND ADJUSTED OPERATING MARGIN | |||||||||||||
Three Months Ended | Nine Months Ended | Fiscal Year | |||||||||||
USD in millions | October 27, | October 29, | % | October 27, | October 29, | % | January 28, | ||||||
Operating income (GAAP) | $ 5,418 | $ 5,406 | 0.2 % | (2.9) % | |||||||||
Operating margin (1) | 13.5 % | 14.3 % | 14.2 % | 14.9 % | 14.2 % | ||||||||
Acquired intangible asset amortization (2) | 138 | 48 | 280 | 136 | 186 | ||||||||
Adjusted operating income (Non-GAAP) | $ 5,556 | $ 5,454 | 1.9 % | (2.1) % | |||||||||
Adjusted operating margin (Non-GAAP) (3) | 13.8 % | 14.5 % | 14.4 % | 15.0 % | 14.3 % |
(1) | Operating margin is calculated as operating income divided by total net sales. | ||||||
(2) | Amounts include acquired intangible asset amortization of | ||||||
(3) | Adjusted operating margin is calculated as adjusted operating income divided by total net sales. |
Our adjusted operating margin guidance for fiscal 2024 excludes an expected approximately 30 basis point impact from acquired intangible asset amortization.
RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE | |||||||||||||
Three Months Ended | Nine Months Ended | Fiscal Year | |||||||||||
per share amounts | October 27, | October 29, | % | October 27, | October 29, | % | January 28, | ||||||
Diluted earnings per share (GAAP) | $ 3.67 | $ 3.81 | (3.7) % | $ 11.90 | $ 12.28 | (3.1) % | $ 15.11 | ||||||
Impact of acquired intangible asset amortization | 0.14 | 0.05 | 0.28 | 0.13 | 0.19 | ||||||||
Income tax impact of non-GAAP adjustment (4) | (0.03) | (0.01) | (0.06) | (0.03) | (0.05) | ||||||||
Adjusted diluted earnings per share (Non- | $ 3.78 | $ 3.85 | (1.8) % | $ 12.12 | $ 12.38 | (2.1) % | $ 15.25 |
(4) | Calculated as the per share impact of acquired intangible asset amortization multiplied by the Company's effective tax rate |
Our adjusted diluted earnings per share guidance for fiscal 2024 excludes an expected after-tax impact of approximately
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SOURCE The Home Depot
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