01—Abstract
Summary
Summary of the 10-K filed March 22, 2012. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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 billionb 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.
02—Key points
Key Highlights
- Net Sales increased by 3.5% to $70.4 billion in fiscal year 2011.
- Diluted Earnings per Share rose to $2.47 from $2.01 in the prior fiscal year.
- Comparable store sales increased by 3.4%, signaling a recovery in demand.
- The company returned $3.5 billion to shareholders through share repurchases.
- A 16% increase in the quarterly cash dividend was announced, reflecting confidence in financial health.
- Investments in interconnected retail and supply chain efficiency are ongoing strategic priorities.
- The company ended the fiscal year with $2.0 billion in cash and cash equivalents, indicating strong liquidity.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2012, Home Depot, Inc. kept $0.06.
- Revenue$70.39B100.0%
- Cost of revenue−$46.13B65.5%
- Gross profit$24.26B34.5%
- Operating costs−$17.60B25.0%
- Operating income$6.66B9.5%
- Interest, other & tax−$2.78B3.9%
- Net income$3.88B5.5%
Where FY2012 revenue went
$70.39B- Cost of revenue: $46.13B, 66% of revenue
- SG&A: $16.03B, 23% of revenue
- Net income: $3.88B, 5.5% of revenue
- Other operating costs: $1.57B, 2.2% of revenue
- Interest, other & tax: $2.78B, 3.9% of revenue
Kept 5.5% as net incomeNet income $3.88B · 5.5%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2012filed March 22, 2012Financial Statements
FY2012 against FY2011
| Line item | FY2012FY2011 | Change |
|---|---|---|
| Revenue | $70.39B$68.00B | +3.5% |
| Cost of Revenue | $46.13B$44.69B | +3.2% |
| Gross Profit | $24.26B$23.30B | +4.1% |
| SG&A Expenses | $16.03B$15.85B | +1.1% |
| Operating Expenses | $17.60B$17.46B | +0.8% |
| Operating Income | $6.66B$5.84B | +14.1% |
| Interest Expense | $606.00M$530.00M | +14.3% |
| Net Income | $3.88B$3.34B | +16.3% |
| EPS (Basic) | $2.49$2.03 | +22.7% |
| EPS (Diluted) | $2.47$2.01 | +22.9% |
| Shares Outstanding (Basic) | 1.56B1.65B | −5.2% |
| Shares Outstanding (Diluted) | 1.57B1.66B | −5.3% |
05—Questions
Frequently Asked Questions
What was Home Depot's financial performance in fiscal year 2011?
In fiscal year 2011 (ended January 29, 2012), Home Depot reported a Net Sales increase of 3.5% to $70.4 billion and Net Earnings of $3.9 billion, with Diluted Earnings per Share of $2.47. This represents a significant improvement from the previous year, driven by a 3.4% increase in comparable store sales.
How is Home Depot returning value to shareholders?
Home Depot is actively returning value to shareholders through a robust share repurchase program and dividend payments. In fiscal year 2011, the company repurchased $3.5 billion of its common stock and announced a 16% increase in its quarterly cash dividend, underscoring its commitment to shareholder returns.
What are Home Depot's key strategic initiatives for growth?
Home Depot is focusing on four key initiatives: enhancing Customer Service, strengthening Product Authority through merchandising and innovation, driving Productivity and Efficiency via technology and supply chain improvements, and developing Interconnected Retail for a seamless customer experience across all channels. These initiatives are designed to improve operational performance and customer engagement.
What is Home Depot's financial position and outlook?
The company demonstrates a strong financial position with $2.0 billion in cash and cash equivalents at the end of fiscal 2011. Its operations generated $6.7 billion in cash flow. Management believes its current liquidity, access to capital markets, and operational cash flow are sufficient to fund capital expenditures, dividends, share repurchases, and debt obligations, indicating a positive outlook.
06—Continue