10-KPeriod: FY2023

HOME DEPOT, INC. Annual Report, Year Ended Jan 29, 2023

Filed March 15, 2023For Securities:HD

Summary

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.

Financial Highlights

27 data points
Beta

Revenue

$157.40B

33.5% Gross Margin

Net Income

$17.11B

10.9% Net Margin

EPS (Diluted)

$16.69

Free Cash Flow

$14.62B

Financial Statements
Beta
Revenue$157.40B
Cost of Revenue$104.63B
Gross Profit$52.78B
SG&A Expenses$26.28B
Operating Expenses$28.74B
Operating Income$24.04B
Interest Expense$1.62B
Net Income$17.11B
EPS (Basic)$16.74
EPS (Diluted)$16.69
Shares Outstanding (Basic)1.02B
Shares Outstanding (Diluted)1.02B

Key Highlights

  • 1Achieved net sales of $157.4 billion in fiscal 2022, a 4.1% increase year-over-year.
  • 2Reported net earnings of $17.1 billion, or $16.69 per diluted share, up 7.5% from the prior year.
  • 3Returned over $14 billion to shareholders through cash dividends and share repurchases in fiscal 2022.
  • 4Increased quarterly cash dividend by 10% to $2.09 per share.
  • 5Invested $3.1 billion in capital expenditures to support business growth and enhance customer experience.
  • 6Maintained a strong ROIC of 44.6% in fiscal 2022.
  • 7Online sales grew by 7.4%, representing 14.2% of total net sales, reflecting ongoing digital investments.

Frequently Asked Questions

In fiscal year 2022, Home Depot reported net sales of $157.4 billion, a 4.1% increase from fiscal year 2021. Net earnings were $17.1 billion, or $16.69 per diluted share, representing a 7.5% increase. The company maintained a gross profit margin of 33.5% and a Return on Invested Capital (ROIC) of 44.6%.

The company demonstrated a strong commitment to shareholder returns by investing $3.1 billion in capital expenditures to drive growth and enhance customer experience. Additionally, Home Depot returned over $14 billion to shareholders through a combination of cash dividends and share repurchases. They also announced a 10% increase in their quarterly cash dividend.

Home Depot's core strategies revolve around providing the best customer experience in home improvement, extending its position as the low-cost provider, and being the most efficient investor of capital. Key initiatives include enhancing its interconnected shopping experience across digital and physical channels, growing its professional customer segment ('Pros'), and investing in its supply chain to improve delivery speed and reliability.

The company navigated challenges such as macroeconomic factors including inflation, which led to an increase in the average ticket price but also a decrease in customer transactions. A shift in consumer spending from goods to services also contributed to fewer transactions. Despite these factors, the company managed its expenses effectively, and the impact of inflation was partially offset by higher retail prices and favorable product mix.