EX-99.1 2 hd_exhibit991x04302017.htm EX-99.1 Exhibit


Exhibit 99.1
hdlogoa02a01a01a01a01a05.jpg
The Home Depot Announces First Quarter Results;
Updates Fiscal Year 2017 Guidance

ATLANTA, May 16, 2017 -- The Home Depot®, the world's largest home improvement retailer, today reported sales of $23.9 billion for the first quarter of fiscal 2017, a 4.9 percent increase from the first quarter of fiscal 2016. Comparable store sales for the first quarter of fiscal 2017 were positive 5.5 percent, and comp sales for U.S. stores were positive 6.0 percent.

Net earnings for the first quarter of fiscal 2017 were $2.0 billion, or $1.67 per diluted share, compared with net earnings of $1.8 billion, or $1.44 per diluted share, in the same period of fiscal 2016. For the first quarter of fiscal 2017, diluted earnings per share increased 16.0 percent from the same period in the prior year.

“We were pleased with our results as they reflected broad-based growth across our interconnected platform and all geographies,” said Craig Menear, chairman, CEO and president. “This was made possible by our hard working store associates, merchants and supply chain teams and our continued dedication to customer service.”

Updated Fiscal 2017 Guidance

Based on its year-to-date performance, the Company reaffirmed its fiscal 2017 sales growth guidance and expects sales will be up approximately 4.6 percent and comp sales will be up approximately 4.6 percent. The Company also raised its diluted earnings-per-share growth guidance for the year and now expects diluted earnings-per-share growth after anticipated share repurchases of approximately 11.0 percent from fiscal 2016 to $7.15.

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 first quarter, the Company operated a total of 2,281 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs more than 400,000 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.

###


Certain statements contained herein constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may relate to, among other things, the demand for our products and services; net sales growth; comparable store sales; effects of



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competition; state of the economy; state of the residential construction, housing and home improvement markets; state of the credit markets, including mortgages, home equity loans and consumer credit; demand for credit offerings; inventory and in-stock positions; implementation of store, interconnected retail, supply chain and technology initiatives; management of relationships with our suppliers and vendors; the impact and expected outcome of investigations, inquiries, claims and litigation, including those related to the 2014 data breach; issues related to the payment methods we accept; continuation of share repurchase programs; net earnings performance; earnings per share; dividend targets; capital allocation and expenditures; liquidity; return on invested capital; expense leverage; stock-based compensation expense; commodity price inflation and deflation; the ability to issue debt on terms and at rates acceptable to us; the effect of accounting charges; the effect of adopting certain accounting standards; store openings and closures; guidance for fiscal 2017 and beyond; financial outlook; and the integration of Interline Brands, Inc. (“Interline”) into our organization and the ability to recognize the anticipated synergies and benefits of the acquisition. Forward-looking statements are based on currently available information and our current assumptions, expectations and projections about future events. You should not rely on our forward-looking statements. These statements are not guarantees of future performance and are subject to future events, risks and uncertainties - many of which are beyond our control or are currently unknown to us - as well as potentially inaccurate assumptions that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include but are not limited to those described in Item 1A, “Risk Factors,” and elsewhere in our Annual Report on Form 10-K for our fiscal year ended January 29, 2017 and in our subsequent Quarterly Reports on Form 10-Q.


Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our periodic filings with the Securities and Exchange Commission.

For more information, contact:
 
 
Financial Community
 
News Media
Diane Dayhoff
 
Stephen Holmes
Vice President of Investor Relations
 
Director of Corporate Communications
770-384-2666
 
770-384-5075
diane_dayhoff@homedepot.com
 
stephen_holmes@homedepot.com
 
 
 



THE HOME DEPOT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED APRIL 30, 2017 AND MAY 1, 2016
(Unaudited)
(Amounts in Millions Except Per Share Data and as Otherwise Noted)
 
 
Three Months Ended


 
April 30,
2017

May 1,
2016

% Increase
(Decrease)
NET SALES
$
23,887


$
22,762


4.9
 %
Cost of Sales
15,733


14,971


5.1

GROSS PROFIT
8,154


7,791


4.7


Operating Expenses:




 
Selling, General and Administrative
4,361


4,281


1.9

Depreciation and Amortization
444


433


2.5

Total Operating Expenses
4,805


4,714


1.9

OPERATING INCOME
3,349


3,077


8.8

Interest and Other (Income) Expense:




 
Interest and Investment Income
(13
)

(7
)

85.7

Interest Expense
254


244


4.1

Interest and Other, net
241


237


1.7


EARNINGS BEFORE PROVISION FOR
INCOME TAXES
3,108


2,840


9.4

Provision for Income Taxes
1,094


1,037


5.5










NET EARNINGS
$
2,014


$
1,803


11.7
 %









Basic Weighted Average Common Shares
1,198


1,247


(3.9
)%
BASIC EARNINGS PER SHARE
$
1.68


$
1.45


15.9










Diluted Weighted Average Common Shares
1,204


1,252


(3.8
)%
DILUTED EARNINGS PER SHARE
$
1.67


$
1.44


16.0

 
 
 
 
 
 
 
Three Months Ended
 
 
SELECTED SALES DATA(1)
April 30,
2017
 
May 1,
2016
 
% Increase
(Decrease)
Number of Customer Transactions
380.8

 
374.8

 
1.6
 %
Average Ticket (actual)
$
62.39

 
$
60.03

 
3.9

Sales per Square Foot (actual)
$
394.17

 
$
376.73

 
4.6

 
 —————
(1)
Selected Sales Data does not include results for Interline, which was acquired in the third quarter of fiscal 2015.



 






THE HOME DEPOT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF APRIL 30, 2017, MAY 1, 2016 AND JANUARY 29, 2017
(Unaudited)
(Amounts in Millions)


April 30,
2017
 
May 1,
2016
 
January 29,
2017
ASSETS
 
 
 
 
 
Cash and Cash Equivalents
$
3,565

 
$
3,257

 
$
2,538

Receivables, net
2,164

 
1,989

 
2,029

Merchandise Inventories
13,609

 
13,219

 
12,549

Other Current Assets
558

 
545

 
608

Total Current Assets
19,896

 
19,010

 
17,724


Net Property and Equipment
21,789

 
22,243

 
21,914

Goodwill
2,095

 
2,123

 
2,093

Other Assets
1,164

 
1,200

 
1,235

TOTAL ASSETS
$
44,944

 
$
44,576

 
$
42,966

 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
Short-Term Debt
$
—

 
$
—

 
$
710

Accounts Payable
9,138

 
8,711

 
7,000

Accrued Salaries and Related Expenses
1,353

 
1,339

 
1,484

Current Installments of Long-Term Debt
544

 
44

 
542

Other Current Liabilities
5,403

 
5,055

 
4,397

Total Current Liabilities
16,438

 
15,149

 
14,133


Long-Term Debt, excluding current installments
22,393

 
20,904

 
22,349

Other Liabilities
2,151

 
2,188

 
2,151

Total Liabilities
40,982

 
38,241

 
38,633


Total Stockholders' Equity
3,962

 
6,335

 
4,333

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
44,944

 
$
44,576

 
$
42,966





THE HOME DEPOT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED APRIL 30, 2017 AND MAY 1, 2016
(Unaudited)
(Amounts in Millions)
 
 
Three Months Ended
 
April 30,
2017

May 1,
2016
CASH FLOWS FROM OPERATING ACTIVITIES:



Net Earnings
$
2,014


$
1,803

Reconciliation of Net Earnings to Net Cash Provided by Operating Activities:
 
 
 
Depreciation and Amortization
505


486

Stock-Based Compensation Expense
81


72

Changes in Working Capital and Other
1,964


1,275

Net Cash Provided by Operating Activities
4,564


3,636


CASH FLOWS FROM INVESTING ACTIVITIES:



Capital Expenditures
(458
)

(325
)
Proceeds from Sales of Property and Equipment
13


4

Net Cash Used in Investing Activities
(445
)

(321
)

CASH FLOWS FROM FINANCING ACTIVITIES:



Repayments of Short-Term Debt, net
(710
)

(350
)
Proceeds from Long-Term Debt, net of discounts
—

 
2,989

Repayments of Long-Term Debt
(11
)

(3,012
)
Repurchases of Common Stock
(1,289
)

(1,157
)
Proceeds from Sales of Common Stock
31


29

Cash Dividends Paid to Stockholders
(1,069
)

(862
)
Other Financing Activities
(33
)

25

Net Cash Used in Financing Activities
(3,081
)

(2,338
)
Change in Cash and Cash Equivalents
1,038


977

Effect of Exchange Rate Changes on Cash and Cash Equivalents
(11
)

64

Cash and Cash Equivalents at Beginning of Period
2,538


2,216

Cash and Cash Equivalents at End of Period
$
3,565


$
3,257