The Home Depot Announces Q2 Results
Wednesday, August 18th, 2021
The Home Depot, the world's largest home improvement retailer, today reported sales of $41.1 billion for the second quarter of fiscal 2021, an increase of $3.1 billion, or 8.1 percent from the second quarter of fiscal 2020. Comparable sales for the second quarter of fiscal 2021 increased 4.5 percent, and comparable sales in the U.S.increased 3.4 percent.
Net earnings for the second quarter of fiscal 2021 were $4.8 billion, or $4.53 per diluted share, compared with net earnings of $4.3 billion, or $4.02 per diluted share, in the same period of fiscal 2020. For the second quarter of fiscal 2021, diluted earnings per share increased 12.7 percent from the same period in the prior year.
"I am very proud of our associates, who continue to demonstrate a relentless focus on serving our customers," said Craig Menear, chairman and CEO. "As a result of their efforts, we achieved a milestone of over $40 billion in quarterly sales for the first time in Company history. I would like to extend my sincere appreciation to our team, as well as our supplier and supply chain partners, as they continue to operate in this dynamic and challenging environment."
The Home Depot will conduct a conference call today at 9 a.m. ET to discuss information included in this news release and related matters. The conference call will be available in its entirety through a webcast and replay at ir.homedepot.com/events-and-presentations.
At the end of the second quarter, the Company operated a total of 2,298 Home Depot retail stores in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs approximately 500,000 associates. The Home Depot's stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor's 500 index.
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THE HOME DEPOT, INC. |
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|
Three Months Ended |
Six Months Ended |
||||||||||||||||||||
|
in millions, except per share data |
August 1, |
August 2, |
% Change |
August 1, |
August 2, |
% Change |
|||||||||||||||
|
Net sales |
$ |
41,118 |
$ |
38,053 |
8.1 |
% |
$ |
78,618 |
$ |
66,313 |
18.6 |
% |
|||||||||
|
Cost of sales |
27,453 |
25,112 |
9.3 |
52,211 |
43,747 |
19.3 |
|||||||||||||||
|
Gross profit |
13,665 |
12,941 |
5.6 |
26,407 |
22,566 |
17.0 |
|||||||||||||||
|
Operating expenses: |
|||||||||||||||||||||
|
Selling, general and administrative |
6,433 |
6,355 |
1.2 |
12,807 |
12,184 |
5.1 |
|||||||||||||||
|
Depreciation and amortization |
593 |
519 |
14.3 |
1,180 |
1,039 |
13.6 |
|||||||||||||||
|
Total operating expenses |
7,026 |
6,874 |
2.2 |
13,987 |
13,223 |
5.8 |
|||||||||||||||
|
Operating income |
6,639 |
6,067 |
9.4 |
12,420 |
9,343 |
32.9 |
|||||||||||||||
|
Interest and other (income) expense: |
|||||||||||||||||||||
|
Interest and investment income |
(5) |
(9) |
(44.4) |
(11) |
(26) |
(57.7) |
|||||||||||||||
|
Interest expense |
326 |
346 |
(5.8) |
665 |
670 |
(0.7) |
|||||||||||||||
|
Interest and other, net |
321 |
337 |
(4.7) |
654 |
644 |
1.6 |
|||||||||||||||
|
Earnings before provision for income taxes |
6,318 |
5,730 |
10.3 |
11,766 |
8,699 |
35.3 |
|||||||||||||||
|
Provision for income taxes |
1,511 |
1,398 |
8.1 |
2,814 |
2,122 |
32.6 |
|||||||||||||||
|
Net earnings |
$ |
4,807 |
$ |
4,332 |
11.0 |
% |
$ |
8,952 |
$ |
6,577 |
36.1 |
% |
|||||||||
|
Basic weighted average common shares |
1,058 |
1,073 |
(1.4) |
% |
1,064 |
1,073 |
(0.8) |
% |
|||||||||||||
|
Basic earnings per share |
$ |
4.54 |
$ |
4.04 |
12.4 |
$ |
8.41 |
$ |
6.13 |
37.2 |
|||||||||||
|
Diluted weighted average common shares |
1,062 |
1,077 |
(1.4) |
% |
1,068 |
1,077 |
(0.8) |
% |
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|
Diluted earnings per share |
$ |
4.53 |
$ |
4.02 |
12.7 |
$ |
8.38 |
$ |
6.11 |
37.2 |
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Three Months Ended |
Six Months Ended |
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|
Selected Sales Data (1) |
August 1, |
August 2, |
% Change |
August 1, |
August 2, |
% Change |
|||||||||||||||
|
Customer transactions (in millions) |
481.7 |
511.5 |
(5.8) |
% |
928.9 |
886.3 |
4.8 |
% |
|||||||||||||
|
Average ticket |
$ |
82.48 |
$ |
74.12 |
11.3 |
$ |
82.43 |
$ |
74.37 |
10.8 |
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|
Sales per retail square foot |
$ |
663.05 |
$ |
629.38 |
5.3 |
$ |
634.30 |
$ |
547.94 |
15.8 |
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|
————— |
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(1) Selected Sales Data does not include results for the legacy Interline Brands business or results for HD Supply Holdings, Inc. |
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THE HOME DEPOT, INC. |
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|
in millions |
August 1, |
August 2, |
January 31, |
||||||||
|
Assets |
|||||||||||
|
Current assets: |
|||||||||||
|
Cash and cash equivalents |
$ |
4,566 |
$ |
14,139 |
$ |
7,895 |
|||||
|
Receivables, net |
3,322 |
2,562 |
2,992 |
||||||||
|
Merchandise inventories |
18,909 |
13,498 |
16,627 |
||||||||
|
Other current assets |
1,465 |
1,162 |
963 |
||||||||
|
Total current assets |
28,262 |
31,361 |
28,477 |
||||||||
|
Net property and equipment |
24,750 |
23,387 |
24,705 |
||||||||
|
Operating lease right-of-use assets |
5,960 |
5,436 |
5,962 |
||||||||
|
Goodwill |
7,454 |
2,233 |
7,126 |
||||||||
|
Other assets |
4,343 |
932 |
4,311 |
||||||||
|
Total assets |
$ |
70,769 |
$ |
63,349 |
$ |
70,581 |
|||||
|
Liabilities and Stockholders' Equity |
|||||||||||
|
Current liabilities: |
|||||||||||
|
Accounts payable |
$ |
12,817 |
$ |
11,691 |
$ |
11,606 |
|||||
|
Accrued salaries and related expenses |
2,329 |
2,402 |
2,463 |
||||||||
|
Current installments of long-term debt |
2,428 |
2,476 |
1,416 |
||||||||
|
Current operating lease liabilities |
814 |
831 |
828 |
||||||||
|
Other current liabilities |
8,278 |
6,799 |
6,853 |
||||||||
|
Total current liabilities |
26,666 |
24,199 |
23,166 |
||||||||
|
Long-term debt, excluding current installments |
33,746 |
32,370 |
35,822 |
||||||||
|
Long-term operating lease liabilities |
5,360 |
4,895 |
5,356 |
||||||||
|
Other long-term liabilities |
2,928 |
2,299 |
2,938 |
||||||||
|
Total liabilities |
68,700 |
63,763 |
67,282 |
||||||||
|
Total stockholders' equity (deficit) |
2,069 |
(414) |
3,299 |
||||||||
|
Total liabilities and stockholders' equity |
$ |
70,769 |
$ |
63,349 |
$ |
70,581 |
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|
THE HOME DEPOT, INC. |
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|
Six Months Ended |
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|
in millions |
August 1, |
August 2, |
|||||
|
Cash Flows from Operating Activities: |
|||||||
|
Net earnings |
$ |
8,952 |
$ |
6,577 |
|||
|
Reconciliation of net earnings to net cash provided by operating activities: |
|||||||
|
Depreciation and amortization |
1,414 |
1,222 |
|||||
|
Stock-based compensation expense |
226 |
155 |
|||||
|
Changes in working capital |
(603) |
6,834 |
|||||
|
Changes in deferred income taxes |
(116) |
13 |
|||||
|
Other operating activities |
74 |
28 |
|||||
|
Net cash provided by operating activities |
9,947 |
14,829 |
|||||
|
Cash Flows from Investing Activities: |
|||||||
|
Capital expenditures |
(1,042) |
(1,032) |
|||||
|
Payments for businesses acquired, net |
(416) |
— |
|||||
|
Other investing activities |
— |
12 |
|||||
|
Net cash used in investing activities |
(1,458) |
(1,020) |
|||||
|
Cash Flows from Financing Activities: |
|||||||
|
Repayments of short-term debt, net |
— |
(974) |
|||||
|
Proceeds from long-term debt, net of discounts and premiums |
— |
4,960 |
|||||
|
Repayments of long-term debt |
(1,434) |
(1,806) |
|||||
|
Repurchases of common stock |
(6,905) |
(791) |
|||||
|
Proceeds from sales of common stock |
167 |
164 |
|||||
|
Cash dividends |
(3,526) |
(3,223) |
|||||
|
Other financing activities |
(136) |
(127) |
|||||
|
Net cash used in financing activities |
(11,834) |
(1,797) |
|||||
|
Change in cash and cash equivalents |
(3,345) |
12,012 |
|||||
|
Effect of exchange rate changes on cash and cash equivalents |
16 |
(6) |
|||||
|
Cash and cash equivalents at beginning of period |
7,895 |
2,133 |
|||||
|
Cash and cash equivalents at end of period |
$ |
4,566 |
$ |
14,139 |
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