10-KPeriod: FY2012

HOME DEPOT, INC. Annual Report, Year Ended Jan 29, 2012

Filed March 22, 2012For Securities:HD

Summary

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.

Financial Highlights

28 data points
Beta

Revenue

$70.39B

34.5% Gross Margin

Net Income

$3.88B

5.5% Net Margin

EPS (Diluted)

$2.47

Free Cash Flow

$6.65B

Financial Statements
Beta
Revenue$70.39B
Cost of Revenue$46.13B
Gross Profit$24.26B
SG&A Expenses$16.03B
Operating Expenses$17.60B
Operating Income$6.66B
Interest Expense$606.00M
Net Income$3.88B
EPS (Basic)$2.49
EPS (Diluted)$2.47
Shares Outstanding (Basic)1.56B
Shares Outstanding (Diluted)1.57B

Key Highlights

  • 1Net Sales increased by 3.5% to $70.4 billion in fiscal year 2011.
  • 2Diluted Earnings per Share rose to $2.47 from $2.01 in the prior fiscal year.
  • 3Comparable store sales increased by 3.4%, signaling a recovery in demand.
  • 4The company returned $3.5 billion to shareholders through share repurchases.
  • 5A 16% increase in the quarterly cash dividend was announced, reflecting confidence in financial health.
  • 6Investments in interconnected retail and supply chain efficiency are ongoing strategic priorities.
  • 7The company ended the fiscal year with $2.0 billion in cash and cash equivalents, indicating strong liquidity.

Frequently Asked Questions

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.

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.

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.

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.