Summary
The Home Depot, Inc. (HD) reported net sales of $159.5 billion for fiscal year 2024, which included 53 weeks, contributing approximately $2.5 billion in sales. Net earnings were $14.8 billion, 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 billion 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.
Financial Highlights
50 data points| Revenue | $159.51B |
| Cost of Revenue | $106.21B |
| Gross Profit | $53.31B |
| SG&A Expenses | $28.75B |
| Operating Expenses | $31.78B |
| Operating Income | $21.53B |
| Net Income | $14.81B |
| EPS (Basic) | $14.96 |
| EPS (Diluted) | $14.91 |
| Shares Outstanding (Basic) | 990.00M |
| Shares Outstanding (Diluted) | 993.00M |
Key Highlights
- 1Net 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.
- 2Comparable sales saw a decrease of 1.8% due to macroeconomic pressures, specifically high interest rates impacting consumer demand.
- 3The 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.
- 4Despite the SRS acquisition, The Home Depot maintained a strong financial position, generating $19.8 billion in cash flow from operations.
- 5Shareholder 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.
- 6Capital 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.
- 7The 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.