01—Abstract
Summary
Summary of the 10-K filed March 21, 2025. Cited figures are marked; the original filing is the authoritative source.
The Home Depot, Inc. (HD) reported net sales of $159.5 billiona for fiscal year 2024, which included 53 weeks, contributing approximately $2.5 billion in sales.
Net earnings were $14.8 billionb, 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 billionc 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.
02—Key points
Key Highlights
- Net sales reached $159.5 billion in fiscal 2024, bolstered by an extra week and the acquisition of SRS, which contributed $6.4 billion in net sales.
- Comparable sales saw a decrease of 1.8% due to macroeconomic pressures, specifically high interest rates impacting consumer demand.
- The company completed the significant acquisition of SRS for $17.7 billion, aiming to accelerate growth in the Pro customer segment and expand into specialty trade distribution.
- Despite the SRS acquisition, The Home Depot maintained a strong financial position, generating $19.8 billion in cash flow from operations.
- Shareholder returns remained a priority, with $8.9 billion distributed as cash dividends, and a 2.2% increase in the quarterly dividend was announced for fiscal 2025.
- Capital expenditures for fiscal 2024 were $3.5 billion, with plans to increase to $4 billion in fiscal 2025 to support strategic investments in customer experience and Pro capabilities.
- The company's Return on Invested Capital (ROIC) was 31.3% in fiscal 2024, a decrease from 36.7% in fiscal 2023, largely due to the debt and equity financing for the SRS acquisition.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Home Depot, Inc. kept $0.09.
- Revenue$159.51B100.0%
- Cost of revenue−$106.21B66.6%
- Gross profit$53.31B33.4%
- Operating costs−$31.78B19.9%
- Operating income$21.53B13.5%
- Interest, other & tax−$6.72B4.2%
- Net income$14.81B9.3%
Where FY2025 revenue went
$159.51B- Cost of revenue: $106.21B, 67% of revenue
- SG&A: $28.75B, 18% of revenue
- Net income: $14.81B, 9.3% of revenue
- Other operating costs: $3.03B, 1.9% of revenue
- Interest, other & tax: $6.72B, 4.2% of revenue
Kept 9.3% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed March 21, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $159.51B$152.67B | +4.5% |
| Cost of Revenue | $106.21B$101.71B | +4.4% |
| Gross Profit | $53.31B$50.96B | +4.6% |
| SG&A Expenses | $28.75B$26.60B | +8.1% |
| Operating Expenses | $31.78B$29.27B | +8.6% |
| Operating Income | $21.53B$21.69B | −0.8% |
| Net Income | $14.81B$15.14B | −2.2% |
| EPS (Basic) | $14.96$15.16 | −1.3% |
| EPS (Diluted) | $14.91$15.11 | −1.3% |
| Shares Outstanding (Basic) | 990.00M999.00M | −0.9% |
| Shares Outstanding (Diluted) | 993.00M1.00B | −0.9% |
05—Questions
Frequently Asked Questions
What was the overall financial performance of The Home Depot in fiscal 2024?
The Home Depot reported net sales of $159.5 billion for fiscal year 2024, which benefited from an extra week (53 weeks vs. 52 in the prior year) and the acquisition of SRS. Net earnings were $14.8 billion, or $14.91 per diluted share. The company experienced a slight decline in comparable sales (-1.8%) due to macroeconomic headwinds, but managed its operations effectively.
What is the significance of the SRS acquisition?
The acquisition of SRS for $17.7 billion in June 2024 is a major strategic move aimed at accelerating The Home Depot's growth with Professional (Pro) customers. SRS operates as a leading distributor of specialty trade products (roofing, landscaping, pool supplies), which complements Home Depot's existing offerings and allows the company to better serve the complex needs of renovation and remodeling professionals.
How did The Home Depot manage its capital allocation in fiscal 2024?
The company invested $3.5 billion in capital expenditures for business improvements and new store development. It also returned $8.9 billion to shareholders through dividends. Share repurchases were paused in March 2024 in anticipation of the SRS acquisition. The company's financial strategy continues to prioritize reinvestment in the business, followed by dividends, and then share repurchases.
What are the key risks facing The Home Depot, as highlighted in the filing?
The filing identifies several key risks, including intense competition, the inability to timely identify and respond to evolving customer needs and trends, potential damage to brand and reputation, challenges in executing its interconnected retail strategy, operational risks within the supply chain, and the impact of macroeconomic conditions such as interest rates and inflation on housing and home improvement markets.
06—Continue