01—Abstract
Summary
Summary of the 10-K filed March 23, 2022. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb in capital expenditures for fiscal year 2022, continuing its focus on business growth and enhancing customer and associate experiences.
02—Key points
Key Highlights
- Net sales for fiscal year 2021 reached $151.2 billion, a 14.4% increase year-over-year, reflecting strong consumer demand for home improvement.
- Net earnings were $16.4 billion, or $15.53 per diluted share, showcasing significant profitability.
- Total comparable sales increased by 11.4%, driven by a 11.7% rise in comparable average ticket, indicating increased customer spending per transaction.
- The company returned approximately $22 billion to shareholders in fiscal 2021 through dividends ($7.0 billion) and share repurchases ($14.8 billion).
- The Home Depot plans capital expenditures of approximately $3 billion for fiscal year 2022, signaling continued investment in business growth and operational enhancements.
- The acquisition of HD Supply in late 2020 is integrated, contributing to the company's strategy to serve the MRO marketplace.
- The company maintained a strong return on invested capital (ROIC) of 44.7% for fiscal 2021.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2022, Home Depot, Inc. kept $0.11.
- Revenue$151.16B100.0%
- Cost of revenue−$100.33B66.4%
- Gross profit$50.83B33.6%
- Operating costs−$27.79B18.4%
- Operating income$23.04B15.2%
- Interest, other & tax−$6.61B4.4%
- Net income$16.43B10.9%
Where FY2022 revenue went
$151.16B- Cost of revenue: $100.33B, 66% of revenue
- SG&A: $25.41B, 17% of revenue
- Net income: $16.43B, 11% of revenue
- Other operating costs: $2.39B, 1.6% of revenue
- Interest, other & tax: $6.61B, 4.4% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2022filed March 23, 2022Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $151.16B$132.11B | +14.4% |
| Cost of Revenue | $100.33B$87.26B | +15.0% |
| Gross Profit | $50.83B$44.85B | +13.3% |
| SG&A Expenses | $25.41B$24.45B | +3.9% |
| Operating Expenses | $27.79B$26.57B | +4.6% |
| Operating Income | $23.04B$18.28B | +26.1% |
| Interest Expense | $1.35B$1.35B | 0.0% |
| Net Income | $16.43B$12.87B | +27.7% |
| EPS (Basic) | $15.59$11.98 | +30.1% |
| EPS (Diluted) | $15.53$11.94 | +30.1% |
| Shares Outstanding (Basic) | 1.05B1.07B | −1.9% |
| Shares Outstanding (Diluted) | 1.06B1.08B | −1.9% |
05—Questions
Frequently Asked Questions
What was the overall financial performance of Home Depot in fiscal year 2021?
Home Depot reported a strong performance with net sales of $151.2 billion, up 14.4% from the prior year, and net earnings of $16.4 billion, or $15.53 per diluted share. This was driven by continued high demand in home improvement, increased average customer spend, and successful strategic investments in their interconnected shopping experience.
How did Home Depot return capital to shareholders?
In fiscal year 2021, Home Depot returned approximately $22 billion to shareholders. This included $7.0 billion in cash dividends and $14.8 billion through share repurchases, demonstrating a commitment to enhancing shareholder value.
What are Home Depot's key strategic priorities for the future?
The company's strategic priorities are to provide the best customer experience in home improvement, extend its position as the low-cost provider, and be the most efficient investor of capital. They plan to achieve this by reinvesting in the business and returning excess cash to shareholders.
What is the outlook for capital expenditures in the upcoming fiscal year?
For fiscal year 2022, Home Depot plans to invest approximately $3 billion in capital expenditures, which is consistent with their long-term strategy of investing about 2% of net sales annually back into the business to drive growth and improve customer and associate experiences.
06—Continue