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HD · HOME DEPOT, INC.

31 filings

10-K

HD 10-K Annual Reports

HOME DEPOT, INC. - 31 annual reports

Filing record · 2016–202610-K1110-Q328-K121

2026
HOME DEPOT, INC. Annual Report, Year Ended Feb 1, 2026
The Home Depot, Inc. reported net sales of $164.7 billion and net earnings of $14.2 billion ($14.23 per diluted share) for fiscal year 2025. The company experienced a 3.2% increase in net sales, largely driven by the acquisitions of SRS and GMS, which contributed $6.3 billion in incremental net sales. Comparable sales saw a modest increase of 0.3%, with a 1.4% rise in average ticket offset by a 1.0% decrease in customer transactions. Financially, Home Depot generated $16.3 billion in operating cash flow and returned $9.2 billion to shareholders through dividends, including a 2.2% increase in its quarterly cash dividend. The company invested $3.7 billion in capital expenditures to support its strategic initiatives, focusing on associates, customer experience, and Pro segment growth. While the company paused share repurchases in March 2024, it maintains a significant authorization and sufficient liquidity to fund operations and future investments.
Mar 18, 2026
2025
HOME DEPOT, INC. Annual Report, Year Ended Feb 2, 2025
The Home Depot, Inc. (HD) reported net sales of $159.5 billion for fiscal year 2024, which included 53 weeks, contributing approximately $2.5 billion in sales. Net earnings were $14.8 billion, or $14.91 per diluted share. The company successfully navigated a challenging macroeconomic environment characterized by high interest rates, which impacted home improvement demand, leading to a 1.8% decrease in comparable sales, driven by lower customer transactions and a slight decrease in average ticket. A significant strategic move during the year was the acquisition of SRS, a residential specialty trade distribution company, for $17.7 billion. This acquisition is expected to accelerate growth within the professional (Pro) customer segment and expand The Home Depot's reach into new verticals. The company continued its capital allocation strategy by investing $3.5 billion in capital expenditures and returning $8.9 billion to shareholders through dividends, while pausing share repurchases in anticipation of the SRS acquisition. Looking ahead, The Home Depot plans to increase capital expenditures to approximately $4 billion in fiscal 2025 to support strategic initiatives focused on improving customer experience, Pro capabilities, and new store development.
Mar 21, 2025
2024
HOME DEPOT, INC. Annual Report, Year Ended Jan 28, 2024
Home Depot Inc. (HD) reported a decrease in net sales for fiscal year 2023, reaching $152.7 billion, down from $157.4 billion in fiscal year 2022. This decline was primarily attributed to a challenging macroeconomic environment, including a shift in consumer spending from goods to services and the impact of rising interest rates, which led to fewer customer transactions and a decrease in the average ticket size. Despite the sales dip, the company demonstrated strong profitability with net earnings of $15.1 billion, or $15.11 per diluted share, and a robust return on invested capital (ROIC) of 36.7%. The company continued its commitment to shareholder returns by paying over $16 billion in cash dividends and share repurchases in fiscal 2023. Home Depot also strategically invested $3.2 billion in capital expenditures to support business growth and enhance the customer experience through its interconnected retail strategy, focusing on digital improvements, store enhancements, and supply chain optimization. The company plans further capital investments of $3.0 billion to $3.5 billion in fiscal 2024, with a focus on new stores and improving customer experience.
Mar 13, 2024
2023
HOME DEPOT, INC. Annual Report, Year Ended Jan 29, 2023
The Home Depot, Inc. reported strong net sales of $157.4 billion for fiscal year 2022, a 4.1% increase from the prior year, driven by an increase in average ticket price partially offset by fewer customer transactions. The company maintained a robust gross profit margin of 33.5% and focused on managing operating expenses, resulting in a slight decrease in SG&A as a percentage of net sales. Net earnings reached $17.1 billion, or $16.69 per diluted share, up 7.5% year-over-year. The company continued its commitment to shareholder value by investing $3.1 billion in capital expenditures, increasing its quarterly dividend by 10%, and returning over $14 billion to shareholders through dividends and share repurchases in fiscal 2022. Strategic priorities include enhancing the interconnected shopping experience, focusing on professional customers ('Pros'), and investing in supply chain capabilities to improve delivery speed and reliability. Despite facing macroeconomic headwinds like inflation and a shift in consumer spending, Home Depot is well-positioned due to its strong brand, operational efficiency, and commitment to customer experience. The company's robust financial position and disciplined capital allocation strategy indicate resilience and a continued focus on long-term shareholder value creation.
Mar 15, 2023
2022
HOME DEPOT, INC. Annual Report, Year Ended Jan 30, 2022
The Home Depot, Inc. (HD) reported strong financial performance for fiscal year 2021, driven by sustained high demand in the home improvement sector. Net sales increased by 14.4% to $151.2 billion, and net earnings grew to $16.4 billion, or $15.53 per diluted share. This growth reflects robust comparable sales, a notable increase in average ticket price, and the positive impact of strategic investments in an interconnected customer experience, encompassing both digital and physical channels. The company continued its commitment to shareholder value by returning approximately $22 billion through dividends and share repurchases in fiscal 2021. The company also emphasized its strategic goals of providing the best customer experience, maintaining its position as the low-cost provider, and optimizing capital allocation for efficient investor returns. Looking ahead, The Home Depot plans to reinvest approximately $3 billion in capital expenditures for fiscal year 2022, continuing its focus on business growth and enhancing customer and associate experiences.
Mar 23, 2022
2021
HOME DEPOT, INC. Annual Report, Year Ended Jan 31, 2021
The Home Depot, Inc. (HD) reported strong financial performance for the fiscal year ending January 30, 2021, with net sales increasing by 19.9% to $132.1 billion, reflecting robust growth in both comparable customer transactions and average ticket size. This surge in demand was largely driven by increased consumer focus on home improvement projects, accelerated by the COVID-19 pandemic. The company effectively managed this growth by leveraging its "One Home Depot" strategy, which emphasizes an interconnected, frictionless shopping experience across physical and digital channels. The company demonstrated resilience and adaptability amidst the pandemic, implementing enhanced safety measures for associates and customers and providing significant additional compensation to its workforce, totaling approximately $2.0 billion in fiscal year 2020. Strategic investments in supply chain and digital capabilities, initiated prior to the pandemic, proved instrumental in navigating the operational challenges and meeting evolving customer demands. The acquisition of HD Supply in December 2020 for $7.8 billion is expected to accelerate sales growth by expanding its reach in the MRO (Maintenance, Repair, and Operations) market, further strengthening its position in serving professional customers.
Mar 24, 2021
2020
HOME DEPOT, INC. Annual Report, Year Ended Feb 2, 2020
The Home Depot, Inc.'s 2020 10-K filing highlights a year of robust sales and earnings, demonstrating resilience in the home improvement sector. The company continued its "One Home Depot" strategic initiative, investing significantly in interconnected customer experiences, supply chain enhancements, and associate development. This multi-year investment program aims to create a seamless blend of physical and digital retail channels, catering to both DIY and professional customers. The company also emphasized its commitment to shareholder returns through dividends and share repurchases, underscoring a focus on creating value for its investors. Despite a dynamic retail landscape, The Home Depot maintained its market leadership. The filing also touches upon the early stages of the COVID-19 pandemic, noting its potential impact on supply chains and operations, though the full extent was yet to be determined at the time of filing. The company's strong financial position, operational efficiency, and strategic investments position it to navigate future challenges and capitalize on growth opportunities.
Mar 25, 2020
2019
HOME DEPOT, INC. Annual Report, Year Ended Feb 3, 2019
The Home Depot, Inc. (HD) reported strong financial performance for the fiscal year ended February 2, 2019, with net sales reaching $108.2 billion. This growth was driven by a 5.2% increase in comparable sales, supported by both higher average ticket prices and an increase in customer transactions. Net earnings were $11.1 billion, or $9.73 per diluted share, significantly boosted by a lower effective tax rate due to the Tax Cuts and Jobs Act of 2017. The company continues to invest heavily in its "One Home Depot" strategy, aiming for a seamless customer experience across all channels. Significant investments are being made in store enhancements, digital platforms, and supply chain modernization. The company demonstrated a strong commitment to shareholder returns, repurchasing approximately $10.0 billion in common stock and increasing its quarterly dividend, signaling confidence in its future performance and ability to generate substantial free cash flow.
Mar 28, 2019
2018
HOME DEPOT, INC. Annual Report, Year Ended Jan 28, 2018
The Home Depot, Inc. (HD) reported robust performance in fiscal year 2017, demonstrating strong revenue growth and profitability. Net sales reached $100.9 billion, a significant increase driven by comparable sales growth and improved average ticket prices. The company's strategy, focused on an 'One Home Depot' interconnected experience for both DIY and professional customers, appears to be yielding positive results, with notable growth in online sales. Despite headwinds from hurricane-related expenses and the impact of tax reform, the company managed to increase net earnings to $8.6 billion, or $7.29 per diluted share. Management highlighted strategic investments in supply chain efficiency, technology, and customer service as key drivers for future success. The company also continued its commitment to shareholder returns through substantial share repurchases and dividend payments, underscoring its financial strength and confidence in its business outlook.
Mar 22, 2018
2017
HOME DEPOT, INC. Annual Report, Year Ended Jan 29, 2017
The Home Depot, Inc.'s 2017 10-K filing for the fiscal year ended January 28, 2017, showcases a robust financial performance with net sales reaching $94.6 billion, a 6.9% increase year-over-year. This growth was driven by a 5.6% increase in comparable store sales, reflecting stronger customer transactions and an increased average ticket size. Net earnings rose to $8.0 billion, translating to diluted earnings per share of $6.45. The company continues to invest in its 'interconnected retail' strategy, enhancing both online and in-store customer experiences. Significant capital was returned to shareholders through $7.0 billion in share repurchases and $3.4 billion in dividends. The report highlights the company's strategic focus on customer experience, product authority, and productivity and efficiency. The acquisition of Interline Brands in fiscal 2015 has expanded their reach into the MRO market. While the company managed the financial impact of the 2014 data breach, it continues to face risks associated with competition, evolving consumer demands, and operational efficiency. Overall, The Home Depot demonstrated strong operational execution and financial discipline, positioning itself for continued success in the home improvement sector.
Mar 23, 2017
2016
HOME DEPOT, INC. Annual Report, Year Ended Jan 31, 2016
The Home Depot, Inc. reported strong performance in fiscal year 2015, with Net Sales increasing by 6.4% to $88.5 billion, driven by a 5.6% increase in comparable store sales. Diluted Earnings per Share rose to $5.46 from $4.71 in the prior year. The company successfully integrated the acquisition of Interline Brands, Inc. for $1.7 billion, strengthening its position in the MRO market for professional customers. Significant investments were made in enhancing the customer experience through an interconnected retail strategy, including improvements to online platforms and in-store technology. The company also continued to focus on operational efficiency, particularly in its supply chain through initiatives like "Project Sync." Despite facing challenges, including expenses related to a 2014 data breach, Home Depot demonstrated resilience and continued to return value to shareholders through substantial share repurchases and dividend payments.
Mar 24, 2016
2015
HOME DEPOT, INC. Annual Report, Year Ended Feb 1, 2015
The Home Depot, Inc.'s 2015 10-K filing highlights a strong fiscal year 2014, characterized by a 5.5% increase in Net Sales to $83.2 billion, driven by a 5.3% rise in comparable store sales. This growth was fueled by increased customer transactions and a higher average ticket, indicating robust consumer demand for home improvement products and services. The company's strategic focus on interconnected retail, customer service, and product authority continued to yield positive results. However, the report also discloses a significant data breach in the third quarter of fiscal 2014, impacting payment card information for millions of customers in the U.S. and Canada. While the company has incurred expenses related to the breach and is facing litigation, it is taking steps to enhance its cybersecurity measures and expects potential material financial impacts from ongoing claims and investigations. The company demonstrated disciplined capital allocation by returning $9.5 billion to shareholders through share repurchases ($7.0 billion) and dividends ($2.5 billion) in fiscal 2014. Significant investments were made in supply chain and technology to improve efficiency and customer experience, including the expansion of fulfillment centers to support online growth. Despite the challenges posed by the data breach, Home Depot maintained a strong operational performance and a commitment to enhancing its interconnected retail capabilities, positioning itself for continued growth in the evolving retail landscape.
Mar 26, 2015
2014
HOME DEPOT, INC. Annual Report, Year Ended Feb 2, 2014
The Home Depot, Inc.'s 2013 10-K filing reveals a robust performance with a 5.4% increase in Net Sales to $78.8 billion, driven by a 6.8% rise in comparable store sales. This growth was fueled by increased customer transactions and a higher average ticket price, indicating positive consumer engagement and effective merchandising. The company continued to execute its strategic framework centered on Customer Service, Product Authority, and Disciplined Capital Allocation. Key initiatives include enhancing customer-facing activities, expanding product innovation, optimizing the supply chain, and driving efficiency. The significant growth in online sales, up over 50% year-over-year, highlights the success of its Interconnected Retail strategy, further bolstered by the acquisition of Blinds.com. The company also demonstrated a strong commitment to shareholder returns through substantial share repurchases ($8.5 billion) and a dividend increase, underscoring financial discipline and confidence in future performance.
Mar 27, 2014
2013
HOME DEPOT, INC. Annual Report, Year Ended Feb 3, 2013
The Home Depot, Inc.'s 2013 10-K filing reveals a company demonstrating robust sales growth and strategic execution in fiscal year 2012. Net sales increased by 6.2% to $74.8 billion, driven by a 4.6% rise in comparable store sales, indicating a positive consumer response to the company's offerings and initiatives. This growth was supported by investments in customer service, product innovation, supply chain efficiency, and a strong push into interconnected retail, enabling seamless shopping experiences across multiple channels. The company also highlighted its commitment to shareholder value through disciplined capital allocation, including $4.0 billion in share repurchases and a 34% increase in its quarterly dividend, signaling confidence in its financial health and future prospects. Despite some headwinds such as the closure of its China operations and ongoing economic uncertainties, Home Depot's strategic focus on customer-centricity, product authority, operational efficiency, and expanding its digital footprint positions it for continued success in the home improvement market.
Mar 28, 2013
2012
HOME DEPOT, INC. Annual Report, Year Ended Jan 29, 2012
The Home Depot, Inc.'s 2011 10-K filing reveals a company on a growth trajectory following the economic downturn. For the fiscal year ended January 29, 2012, Home Depot reported a 3.5% increase in Net Sales to $70.4 billion and a significant 16.3% rise in Earnings from Continuing Operations to $3.9 billion, resulting in Diluted Earnings per Share of $2.47, up from $2.01 in the prior year. This performance was driven by a 3.4% increase in comparable store sales, indicating a recovery in consumer spending on home improvement. The company continued to execute on its four key initiatives: Customer Service, Product Authority, Productivity and Efficiency, and Interconnected Retail. Investments in technology and supply chain optimization are evident, contributing to improved in-stock rates and efficiency. Furthermore, Home Depot demonstrated a strong commitment to returning value to shareholders through $3.5 billion in share repurchases and a 16% increase in its quarterly dividend. The company appears well-positioned, with a solid cash flow and access to credit markets, to navigate future challenges and capitalize on opportunities in the home improvement sector.
Mar 22, 2012
2011
HOME DEPOT, INC. Annual Report, Year Ended Jan 30, 2011
The Home Depot, Inc. (HD) reported solid performance in its fiscal year ending January 30, 2011, demonstrating resilience following a challenging prior year. Net sales increased by 2.8% to $68.0 billion, and comparable store sales saw a positive uptick of 2.9%. This growth was driven by an increase in customer transactions and a slight rise in average ticket price, indicating a recovery in consumer spending for home improvement. The company's strategic initiatives, including enhanced customer service, improved product authority, supply chain efficiencies, and an interconnected retail strategy, appear to be yielding positive results. Earnings from continuing operations increased significantly, and the company continued its commitment to returning value to shareholders through share repurchases and dividend payments. Despite ongoing economic uncertainties, Home Depot's diversified customer base and focus on value positions it well for future performance.
Mar 24, 2011
2010
HOME DEPOT, INC. Annual Report, Year Ended Jan 31, 2010
In fiscal year 2009, The Home Depot, Inc. faced a challenging economic environment, reporting a 7.2% decrease in Net Sales to $66.2 billion. Despite this, the company demonstrated resilience by improving its Operating Income margin and focusing on core retail operations. Strategic initiatives included optimizing store productivity, enhancing customer service through training, and managing inventory effectively, leading to a decrease in inventory levels. The company also continued its supply chain transformation with the expansion of Rapid Deployment Centers. Financially, Home Depot generated strong operating cash flow of $5.1 billion, which was used to repay debt, pay dividends, and fund capital expenditures. While earnings per share saw a decline compared to the prior year when excluding certain charges, the company's financial position remained solid, with a manageable debt-to-equity ratio. The focus on efficiency and cost control, alongside strategic exits from non-core businesses, positioned Home Depot to navigate the economic downturn and prepare for future recovery.
Mar 25, 2010
2009
HOME DEPOT, INC. Annual Report, Year Ended Feb 1, 2009
The Home Depot, Inc. (HD) reported its fiscal year 2008 results ending January 31, 2009, a period marked by significant economic challenges. Despite a 7.8% decrease in Net Sales to $71.3 billion, driven by an 8.7% decline in comparable store sales due to the deteriorating housing and home improvement markets and reduced consumer spending, the company generated $2.3 billion in Net Earnings. The company took strategic actions, including closing underperforming stores and exiting non-core businesses like EXPO Design Centers, to focus on its core retail operations and optimize capital allocation. These rationalization efforts resulted in $951 million in pretax charges. Management highlighted a strategic shift from square footage growth to maximizing productivity of existing stores, investing in associates, and improving the shopping environment and product availability. The company maintained a strong cash flow from operations of $5.5 billion, which was used to repay debt, fund capital expenditures, and pay dividends. While acknowledging the difficult economic outlook, Home Depot remains focused on its five key priorities: associate engagement, product excitement, shopping environment, product availability, and serving professional customers.
Apr 2, 2009
2008
HOME DEPOT, INC. Annual Report, Year Ended Feb 3, 2008
Home Depot, Inc. (HD) filed its 2008 10-K report, reflecting performance through the fiscal year ended February 2, 2008. The company, the world's largest home improvement retailer, reported a decrease in Net Sales to $77.3 billion from $79.0 billion in the prior year, attributed to a challenging housing and home improvement market. Net earnings for the year were $4.4 billion, a decline from $5.8 billion in fiscal 2007. This period was marked by strategic shifts, including the sale of HD Supply for $8.3 billion and significant share repurchases as part of a $22.5 billion recapitalization plan. Management highlighted investments in five key operating priorities: associate engagement, product excitement, shopping environment, product availability, and serving the professional customer. The company's outlook for fiscal 2008 projected further declines in Net Sales and Diluted Earnings Per Share, signaling continued market softness. Despite these headwinds, Home Depot continued to invest in store modernization and technology initiatives to enhance customer experience and operational efficiency. The report details substantial share repurchases funded by operating cash flow and the proceeds from the HD Supply sale, underscoring a commitment to returning capital to shareholders.
Apr 3, 2008
2007
HOME DEPOT, INC. Annual Report, Year Ended Jan 28, 2007
The Home Depot, Inc.'s 2007 10-K filing reveals a company with substantial scale and diversified operations, encompassing both its core retail home improvement business and the rapidly growing HD Supply segment. For fiscal year 2006, the company reported net sales of $90.8 billion, with net earnings of $5.8 billion. Despite a challenging U.S. housing market leading to a 2.8% decline in comparable store sales for the Retail segment, overall net sales saw an 11.4% increase driven significantly by the HD Supply segment's 162% growth, largely due to strategic acquisitions. The company continues to invest heavily in store modernization and technology, allocating $3.5 billion in capital expenditures, and is actively repurchasing shares, having spent $8.1 billion on repurchases and dividends.
Mar 29, 2007
2006
HOME DEPOT, INC. Annual Report, Year Ended Jan 29, 2006
The Home Depot, Inc.'s 2006 10-K filing highlights a strong fiscal year 2005, marked by significant net sales growth to $81.5 billion and diluted earnings per share of $2.72. The company experienced a 3.8% increase in comparable store sales, supported by strategic merchandising initiatives and investments in store modernization and technology. A key strategic move was the announcement of the acquisition of Hughes Supply for approximately $3.5 billion, aimed at expanding its professional services business. The company demonstrated a robust balance sheet with a return on invested capital of 22.4% and maintained a disciplined capital allocation strategy, investing heavily in new store openings, modernization, technology, and returning capital to shareholders through dividends and significant share repurchases. Despite facing competitive pressures and economic factors like rising costs and credit availability, The Home Depot reported record gross profit and operating margins, underscoring its operational efficiency and market leadership in the home improvement sector.
Mar 29, 2006
2005
HOME DEPOT, INC. Annual Report, Year Ended Jan 30, 2005
The Home Depot's fiscal 2004 (year ended January 30, 2005) was a record year. Net sales rose 12.8% to $73.1 billion, comparable store sales grew 5.4% (its best since 1999), and net earnings increased 16.2% to $5.0 billion, with diluted EPS of $2.26, up from $1.88. Operating margin reached a record 10.8%, and gross margin hit 33.4%, the highest in the company's history. Part of the margin gain is an accounting effect: adoption of EITF 02-16 moved $891 million of vendor co-op allowances out of cost of merchandise sold, which added about 122 basis points to gross margin but reduced EPS by $0.04. On a pro forma basis, the EPS impact is about $2.30 versus $1.88 in the prior year. The company remains highly cash generative, with $6.9 billion of operating cash flow funding $3.9 billion of capital expenditures and $727 million of acquisitions (White Cap Industries and Home Mart Mexico). It also returned $3.8 billion to shareholders through $3.1 billion of buybacks and $719 million of dividends, and the board added $2.0 billion to the repurchase authorization. Balance sheet strength is evident in $2.2 billion of cash and short-term investments and a debt-to-equity ratio of 8.9%, up from 6.1% mainly due to $1.0 billion of new 3.75% senior notes. The company opened 183 net new stores, ending the year with 1,890 locations, and management guided to fiscal 2005 sales growth of 9% to 12%, comparable store sales growth of 4% to 7%, and diluted EPS growth of 10% to 14%. Key pressures for fiscal 2005 include higher depreciation (about $250 million more), roughly $125 million of additional stock-based compensation (including the SFAS 123(R) adoption), and ongoing reliance on new store growth. Comparable store sales were also aided by hurricane-related demand and lumber price inflation, which added about 100 basis points, so investors should weigh how much of the 2004 performance is repeatable.
Apr 11, 2005
2004
HOME DEPOT, INC. Annual Report, Year Ended Feb 1, 2004
The Home Depot's fiscal 2003 (year ended February 1, 2004) was a strong year, with net earnings rising 17.5% to $4.3 billion and diluted EPS up 20.5% to $1.88 on net sales of $64.8 billion, an 11.3% increase. Growth was driven by a 3.8% comparable store sales increase, the first positive comp since 2000, plus contributions from 175 new stores. Gross margin expanded to 31.8% from 31.1%, aided by centralized purchasing, lower shrink, import penetration, and the adoption of EITF 02-16. Net service revenues grew 40% to $2.8 billion, and the company repurchased about $1.6 billion of stock during the year, with a share repurchase authorization increased to $1.4 billion in February 2004. Balance sheet strength stood out. Cash and short-term investments were $2.9 billion, total debt-to-equity was 6.1%, and return on invested capital reached 20.4%, up 160 basis points. Operating cash flow rose to $6.5 billion from $4.8 billion, while capital expenditures increased to $3.5 billion. The company owns about 86% of its stores, which management views as a competitive advantage. Management guides to fiscal 2004 net sales growth of 9% to 12%, comparable store sales growth of 3% to 6%, and diluted EPS growth of 7% to 11%, including roughly a $0.05 dilution from EITF 02-16. Investors should note the company's exposure to the U.S. housing and remodeling cycle, rising self-insurance and medical costs, and cannibalization, which reduced comparable sales by about 2.7% in fiscal 2003. FIN 46 consolidation will add $282 million of long-term debt in fiscal 2004, lifting the debt-to-equity ratio to about 7.4% on a pro forma basis, with no net earnings impact. Overall, the filing portrays a company with strong growth, expanding margins, and a conservative balance sheet.
Apr 12, 2004
2003
HOME DEPOT, INC. Annual Report, Year Ended Feb 2, 2003
The Home Depot's fiscal 2002 (52 weeks ended February 2, 2003) showed solid profitability growth despite flat comparable-store sales. Net sales rose 8.8% to $58.2 billion, driven by 203 new stores opened during the year, while comparable-store sales were flat at 0%. Gross margin expanded 90 basis points to 31.1%, helped by centralized purchasing, lower shrink, and higher direct-import penetration (8% vs. 6%). Operating income grew 18.2% to $5.83 billion (10.0% of sales), and diluted EPS increased 20.9% to $1.56, with net earnings up 20.4% to $3.66 billion. Weighted average weekly sales per store fell 4.9% to $772,000, reflecting cannibalization of about 21% of existing stores, which management estimates reduced comparable sales by roughly 4%. Cash flow and capital allocation shifted meaningfully. Operating cash flow declined to $4.8 billion from $6.0 billion, mainly because merchandise inventory rose 7.9% per store to improve in-stock positions. The company offset part of this with stronger payables, with days payable outstanding rising to 42 from 34. Capital expenditures fell to $2.7 billion from $3.4 billion on timing shifts, and management guided fiscal 2003 capex to roughly $4.0 billion. The company also repurchased about 68.6 million shares for $2 billion under a July 2002 program, pushing financing outflows to $2.2 billion. Balance sheet strength remains evident, with $2.3 billion in cash and short-term investments, total long-term debt of only about $1.3 billion, and a long-term debt-to-equity ratio of 6.7%, though this rises to 28.5% when operating and off-balance-sheet leases are capitalized. For investors, the key takeaways are margin-driven earnings growth achieved without comparable-sales growth, a planned step-up in fiscal 2003 investment, and rising sensitivity to inventory and working-capital management. Management plans 206 new store openings in fiscal 2003 and expects the diluted EPS impact of expensing stock options to be about $0.02. Legal proceedings are not expected to be material.
Apr 21, 2003
2002
HOME DEPOT, INC. Annual Report, Year Ended Feb 3, 2002
The Home Depot's fiscal 2001 10-K (fiscal year ended February 3, 2002, a 53-week year) shows a company still growing rapidly but with flat comparable-store sales. Net sales rose 17.1% to $53.6 billion, driven by 204 new stores and the extra week (about $880 million of the increase). Comparable-store sales were flat, which management attributed to weak consumer confidence and high unemployment. Net earnings grew 17.9% to $3.04 billion, and diluted EPS rose to $1.29 from $1.10. Operating margin held at 9.3% of sales, with gross margin improving to 30.2% from 29.9%, helped by lower merchandise costs, centralized purchasing, and tool rental expansion, partly offset by higher store occupancy, energy, and credit card fees. Cash generation improved sharply. Operating cash flow nearly doubled to $6.0 billion from $2.8 billion, mainly because days payable outstanding rose from 23 to 34 and average inventory per store fell 12.7%. Capital spending was about $3.4 billion, and the company ended the year with $2.5 billion in cash, against $1.25 billion of long-term debt. The debt-to-equity ratio was 6.9%, though it would rise to roughly 30% if off-balance-sheet operating leases were capitalized. Management plans to open 200 stores in fiscal 2002 with roughly $3.6 billion of capital expenditures. Investors should weigh the strong earnings and cash flow against several items: the flat comparable sales, a $799 million residual value guarantee on off-balance-sheet leases, the $45 million Argentina impairment, and a $1.8 billion-plus gap between the debt-to-equity headline and lease-adjusted leverage. The filing also reflects a leadership transition, with Robert Nardelli as CEO and Chairman and CFO Dennis Carey departing in March 2002.
Apr 19, 2002
2001
HOME DEPOT, INC. Annual Report, Year Ended Jan 28, 2001
The Home Depot's fiscal 2000 (year ended January 28, 2001) was a year of strong top-line growth and profitability, with net sales rising 19.0% to $45.7 billion and net earnings increasing 11.3% to $2.58 billion. Diluted EPS reached $1.10, up from $1.00 in fiscal 1999. Growth was driven by 204 new store openings, a 4% comparable store sales increase, and expansion into new markets including Canada, Chile, and Argentina. Gross margin improved modestly to 29.9% from 29.7%, aided by global sourcing and tool rental expansion, but operating margin contracted to 9.2% from 9.9% as selling, store operating, and medical costs rose faster than sales. Balance sheet and cash flow indicators show a company funding aggressive expansion internally. Operating cash flow was $2.8 billion, while capital expenditures of $3.6 billion exceeded it, pushing the company to increase borrowings. Long-term debt rose to $1.5 billion, and commercial paper of $754 million was reclassified as non-current, backed by a $1 billion program and an $800 million credit facility. Management plans roughly 200 new Home Depot stores, 17 EXPO Design Centers, and 13 Canadian stores in fiscal 2001, with about 92% of new locations to be owned. Leadership transitioned in December 2000, with Robert Nardelli named President and CEO and Bernard Marcus and Arthur Blank becoming Co-Chairmen. For investors, the key takeaways are sustained double-digit growth and a leading position as the largest U.S. home improvement retailer (approximately 9.4% share in the U.S. and Canada), offset by margin pressure from labor and benefit costs and a capital-intensive growth model. The filing also notes a $500 million senior note issuance in April 2001, which was after year-end, and that management does not view inflation as material. Risks cited include weather, sourcing costs, labor availability, real estate conditions, economic cycles, competition, and regulation.
Apr 23, 2001
2000
HOME DEPOT, INC. Annual Report, Year Ended Jan 30, 2000
The Home Depot's fiscal 1999 (year ended January 30, 2000) was a record year of growth and profitability. Net sales rose 27.2% to $38.4 billion from $30.2 billion, driven by a 10% comparable-store sales increase and a full year of sales from 138 stores opened in fiscal 1998, plus 169 new openings in fiscal 1999. Net earnings grew 43.7% to $2.32 billion, and diluted EPS rose to $1.00 from $0.71 (both adjusted for the December 1999 three-for-two stock split). Net margin expanded to 6.0% from 5.3%, reflecting a gross margin improvement to 29.7% from 28.5% on lower merchandise costs, more imports, and better shrink results, partly offset by higher selling and store operating expenses (17.8% of sales, up from 17.7%). The balance sheet strengthened considerably. Stockholders' equity rose to $12.3 billion from $8.7 billion, largely because $1.1 billion of 3 1/4% convertible notes converted into 72 million shares. Long-term debt fell to $750 million from $1.57 billion, and cash rose to $168 million. Operating cash flow was $2.45 billion, which funded $2.58 billion of capital expenditures. Management says it can fund its capital program through the next several fiscal years using cash flow, a $800 million commercial paper program (currently unused), and operating lease facilities. The main forward-looking points are continued aggressive expansion: about 200 new stores in fiscal 2000 (roughly 89% owned), about 240 in fiscal 2001, and over 1,900 stores by fiscal 2003. Key risks flagged include weather, sourcing costs, labor retention, real estate availability, economic conditions, competition, and regulation. The company also reported that Year 2000 issues produced no material problems and that it does not use derivatives. Investors should weigh the strong growth and returns against the heavy reliance on continued store expansion and the rising cost pressures in store labor and benefits.
Apr 21, 2000
1998
HOME DEPOT, INC. Annual Report, Year Ended Feb 1, 1998
The Home Depot's fiscal 1997 (year ended February 1, 1998) was a year of strong top-line growth, with net sales rising 23.7% to $24.2 billion from $19.5 billion, driven by 112 new store openings, 5 relocations, and a 7% comparable store sales increase. Gross margin improved to 28.1% of sales from 27.8%, reflecting lower merchandise costs, more stable lumber prices, and better shrink results. The company ended the year with 624 stores, 587 Home Depot stores and 5 EXPO Design Centers in the U.S. plus 32 in Canada, and 124,400 associates. Reported diluted EPS was $1.55 (net earnings of $1.16 billion), but this includes a one-time pre-tax charge of $104 million to settle gender discrimination lawsuits, including the Butler class action. Excluding that charge, diluted EPS would have been $1.64, up 27% from $1.29 in fiscal 1996. Operating income rose 24.7% to $1.9 billion, and return on beginning equity was 19.5%. Management plans roughly 137 new stores in fiscal 1998 and about 170 in fiscal 1999, with a stated growth cap of about 22% per year. Balance sheet items to watch include inventories up 33% to $3.6 billion, long-term debt of $1.3 billion (mostly the $1.1 billion 3-1/4% convertible notes due 2001), and cash of only $172 million. Capital expenditures were $1.5 billion, and the company financed some store growth through a $600 million operating lease facility. Investors should weigh the aggressive expansion strategy and the lawsuit charge against the strong sales momentum and margin gains.
Apr 23, 1998
1997
HOME DEPOT, INC. Annual Report, Year Ended Feb 2, 1997
The Home Depot's fiscal 1996 10-K (fiscal year ended February 2, 1997, a 53-week year) shows a company still in rapid expansion. Net sales rose 26.3% to $19.54 billion from $15.47 billion, driven by 89 new store openings, a 7% comparable store sales increase and the extra week. Net earnings grew 28.2% to $937.7 million, or $1.94 per share, and net margin edged up to 4.8% from 4.7%. Gross margin improved to 27.8% on better buying practices, while operating expenses fell slightly to 20.0% of sales. The company ended the year with 512 stores, 38 U.S. states and 3 Canadian provinces, and an estimated 14% share of the U.S. home improvement industry. The balance sheet expanded materially. Total assets reached $9.34 billion and stockholders' equity $5.96 billion, but long-term debt more than doubled to $1.25 billion after the October 1996 issuance of $1.104 billion of 3-1/4% convertible subordinated notes due 2001, with a conversion price of $69.125 per share. Capital expenditures were about $1.19 billion in cash terms, and the company plans roughly 111 new stores in fiscal 1997 and about 140 in fiscal 1998. Management says cash flow from operations ($1.10 billion), its $800 million commercial paper program and a $300 million operating lease facility should fund this growth. Inventory rose 24% to $2.71 billion, though inventory turnover was steady at 5.6x. Key forward-looking items include the pending Maintenance Warehouse acquisition (completed March 14, 1997, all-stock, pooling of interests), the planned Chilean joint venture with S.A.C.I. Falabella (66.67% stake), and the new Southwest Division. The company also faces gender discrimination class action litigation in its Western Division, with trial expected in fiscal 1997; management does not expect a material adverse effect.
Apr 22, 1997
1996
HOME DEPOT, INC. Annual Report, Year Ended Jan 28, 1996
The Home Depot's fiscal 1995 (year ended January 28, 1996) was a strong year of top-line expansion with solid profitability, though margins were under mild pressure. Net sales rose 24% to $15.47 billion from $12.48 billion, driven by 83 new store openings, a 3% comparable store sales increase, and a full year of sales from the 69 stores opened in fiscal 1994. Net earnings grew 21% to $731.5 million, and diluted-equivalent EPS rose to $1.54 from $1.32. Management attributed the modest margin pressure to competitive pricing in many markets, a shift in merchandise mix, higher store payroll costs, and higher credit card fees, partly offset by lower G&A as a percentage of sales. Gross margin slipped to 27.7% from 27.9%, and net margin to 4.7% from 4.8%. The balance sheet strengthened considerably. Stockholders' equity nearly doubled to $4.99 billion, primarily because $804 million of 4½% convertible subordinated notes converted into common stock in March 1995, which also cut long-term debt from $983 million to $720 million and sharply reduced the debt-to-equity ratio to 14.4% from 28.6%. Capital expenditures of $1.31 billion were heavily weighted toward owned real estate, with 71% of stores owned. Cash flow from operations rose to $713 million, and the company's $800 million commercial paper program had $620 million outstanding at year end, backed by an $800 million credit facility expiring in December 2000. Looking ahead, Home Depot plans to open 90 to 95 stores in fiscal 1996 and about 123 in fiscal 1997, with an estimated $12.9 million per owned store. Growth is being pursued through its rural CrossRoads format (now being folded into the core Home Depot divisions), the EXPO design centers, and the Canadian operations, while the Midwest is expected to be a fast-growing region. Key risks disclosed include a gender discrimination class action in the Western Division (management does not expect a material adverse impact), the cannibalization effects of dense store placement on comparable store sales, and sizable lease commitments, including residual value guarantees of up to $128.4 million on newly leased facilities.
Apr 8, 1996
1994
HOME DEPOT, INC. Annual Report, Year Ended Jan 30, 1994
The Home Depot's fiscal 1993 10-K (fiscal year ended January 30, 1994) shows a company in rapid expansion with strong top- and bottom-line growth. Net sales rose 29.2% to $9.24 billion, and net earnings increased 26.1% to $457.4 million, or $1.01 per share. Comparable store sales grew 7%, and the company operated 264 stores in 23 states at year-end after opening 50 new stores and relocating six. Gross margin edged up to 27.7% of sales, while operating expenses rose modestly to 20.0% of sales, driven largely by higher payroll costs from new labor standards. Net earnings margin held near 5%, slightly below the prior year's 5.1%, as higher operating costs, lower net interest income, and a higher effective tax rate (38.2%, reflecting the 1993 federal tax increase) offset gains in gross profit. Balance sheet and cash flow data point to a capital-intensive growth model. Capital expenditures more than doubled to $864 million (net of non-cash items), and merchandise inventories rose 38% to $1.29 billion. Operating cash flow of $396.5 million covered a large portion of this investment, with the remainder funded by the substantial investment portfolio, which totaled roughly $612 million on a carrying-value basis. Stockholders' equity reached $2.81 billion, up from $2.30 billion, largely due to earnings and employee stock plan activity, while long-term debt was essentially flat at about $842 million, dominated by the $805 million 4-1/2% convertible subordinated notes due 1997. Management expects approximately 70 new stores in fiscal 1994 and 93 in fiscal 1995, and it disclosed a roughly $163 million acquisition of a 75% stake in Canada's Aikenhead's Home Improvement Warehouse, completed in February 1994. For investors, the key takeaways are sustained rapid unit growth with improving sales productivity, a solid but slightly compressed margin profile, and a balance sheet that remains conservatively financed relative to its equity base. The main watch items are the rising store operating cost base, the pace of expansion (which the company itself caps at roughly 25% annual new-store growth), and the convertible notes maturing in 1997, which management has signaled it can handle through internally generated cash and its investment holdings.
Apr 22, 1994