For more information, contact: | ||
Financial Community | News Media | |
Isabel Janci | Stephen Holmes | |
Vice President of Investor Relations | Senior Director of Corporate Communications | |
770-384-2666 | 770-384-5075 | |
isabel_janci@homedepot.com | stephen_holmes@homedepot.com | |
Three Months Ended | Six Months Ended | ||||||||||||||||||||
in millions, except per share data | July 29, 2018 | July 30, 2017 | % Change | July 29, 2018 | July 30, 2017 | % Change | |||||||||||||||
Net sales | $ | 30,463 | $ | 28,108 | 8.4 | % | $ | 55,410 | $ | 51,995 | 6.6 | % | |||||||||
Cost of sales | 20,098 | 18,647 | 7.8 | 36,428 | 34,380 | 6.0 | |||||||||||||||
Gross profit | 10,365 | 9,461 | 9.6 | 18,982 | 17,615 | 7.8 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||
Selling, general and administrative | 5,004 | 4,549 | 10.0 | 9,783 | 8,910 | 9.8 | |||||||||||||||
Depreciation and amortization | 460 | 449 | 2.4 | 917 | 893 | 2.7 | |||||||||||||||
Total operating expenses | 5,464 | 4,998 | 9.3 | 10,700 | 9,803 | 9.2 | |||||||||||||||
Operating income | 4,901 | 4,463 | 9.8 | 8,282 | 7,812 | 6.0 | |||||||||||||||
Interest and other (income) expense: | |||||||||||||||||||||
Interest and investment income | (26 | ) | (16 | ) | 62.5 | (48 | ) | (29 | ) | 65.5 | |||||||||||
Interest expense | 272 | 265 | 2.6 | 533 | 519 | 2.7 | |||||||||||||||
Interest and other, net | 246 | 249 | (1.2 | ) | 485 | 490 | (1.0 | ) | |||||||||||||
Earnings before provision for income taxes | 4,655 | 4,214 | 10.5 | 7,797 | 7,322 | 6.5 | |||||||||||||||
Provision for income taxes | 1,149 | 1,542 | (25.5 | ) | 1,887 | 2,636 | (28.4 | ) | |||||||||||||
Net earnings | $ | 3,506 | $ | 2,672 | 31.2 | % | $ | 5,910 | $ | 4,686 | 26.1 | % | |||||||||
Basic weighted average common shares | 1,144 | 1,183 | (3.3 | )% | 1,148 | 1,191 | (3.6 | )% | |||||||||||||
Basic earnings per share | $ | 3.06 | $ | 2.26 | 35.4 | $ | 5.15 | $ | 3.93 | 31.0 | |||||||||||
Diluted weighted average common shares | 1,149 | 1,189 | (3.4 | )% | 1,154 | 1,197 | (3.6 | )% | |||||||||||||
Diluted earnings per share | $ | 3.05 | $ | 2.25 | 35.6 | $ | 5.12 | $ | 3.91 | 30.9 | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||
Selected Sales Data (1) | July 29, 2018 | July 30, 2017 | % Change | July 29, 2018 | July 30, 2017 | % Change | |||||||||||||||
Customer transactions (in millions) | 455.4 | 441.8 | 3.1 | % | 831.2 | 822.6 | 1.1 | % | |||||||||||||
Average ticket | $ | 66.20 | $ | 63.05 | 5.0 | $ | 66.12 | $ | 62.74 | 5.4 | |||||||||||
Sales per square foot | 504.20 | 464.38 | 8.6 | 458.07 | 429.17 | 6.7 |
(1) | Selected Sales Data does not include results for Interline Brands, Inc., which was acquired in fiscal 2015. |
in millions | July 29, 2018 | July 30, 2017 | January 28, 2018 | ||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 3,490 | $ | 4,830 | $ | 3,595 | |||||
Receivables, net | 2,164 | 2,187 | 1,952 | ||||||||
Merchandise inventories | 14,044 | 12,868 | 12,748 | ||||||||
Other current assets | 1,104 | 626 | 638 | ||||||||
Total current assets | 20,802 | 20,511 | 18,933 | ||||||||
Net property and equipment | 21,909 | 22,035 | 22,075 | ||||||||
Goodwill | 2,251 | 2,235 | 2,275 | ||||||||
Other assets | 1,270 | 1,178 | 1,246 | ||||||||
Total assets | $ | 46,232 | $ | 45,959 | $ | 44,529 | |||||
Liabilities and Stockholders' Equity | |||||||||||
Short-term debt | $ | — | $ | — | $ | 1,559 | |||||
Accounts payable | 9,407 | 8,541 | 7,244 | ||||||||
Accrued salaries and related expenses | 1,535 | 1,503 | 1,640 | ||||||||
Current installments of long-term debt | 2,203 | 545 | 1,202 | ||||||||
Other current liabilities | 5,281 | 5,234 | 4,549 | ||||||||
Total current liabilities | 18,426 | 15,823 | 16,194 | ||||||||
Long-term debt, excluding current installments | 23,295 | 24,422 | 24,267 | ||||||||
Other liabilities | 2,502 | 2,160 | 2,614 | ||||||||
Total liabilities | 44,223 | 42,405 | 43,075 | ||||||||
Total stockholders’ equity | 2,009 | 3,554 | 1,454 | ||||||||
Total liabilities and stockholders’ equity | $ | 46,232 | $ | 45,959 | $ | 44,529 |
Six Months Ended | |||||||
in millions | July 29, 2018 | July 30, 2017 | |||||
Cash Flows from Operating Activities: | |||||||
Net earnings | $ | 5,910 | $ | 4,686 | |||
Reconciliation of net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 1,062 | 1,015 | |||||
Stock-based compensation expense | 234 | 148 | |||||
Changes in working capital and other, net of acquisition effects | 791 | 2,013 | |||||
Net cash provided by operating activities | 7,997 | 7,862 | |||||
Cash Flows from Investing Activities: | |||||||
Capital expenditures, net of non-cash capital expenditures | (1,091 | ) | (846 | ) | |||
Payments for business acquired, net | — | (268 | ) | ||||
Proceeds from sales of property and equipment | 16 | 23 | |||||
Net cash used in investing activities | (1,075 | ) | (1,091 | ) | |||
Cash Flows from Financing Activities: | |||||||
Repayments of short-term debt, net | (1,559 | ) | (710 | ) | |||
Proceeds from long-term debt, net of discounts | — | 1,994 | |||||
Repayments of long-term debt | (28 | ) | (21 | ) | |||
Repurchases of common stock | (3,121 | ) | (3,921 | ) | |||
Proceeds from sales of common stock | 35 | 137 | |||||
Cash dividends | (2,373 | ) | (2,130 | ) | |||
Other financing activities | 142 | 2 | |||||
Net cash used in financing activities | (6,904 | ) | (4,649 | ) | |||
Change in cash and cash equivalents | 18 | 2,122 | |||||
Effect of exchange rate changes on cash and cash equivalents | (123 | ) | 170 | ||||
Cash and cash equivalents at beginning of period | 3,595 | 2,538 | |||||
Cash and cash equivalents at end of period | $ | 3,490 | $ | 4,830 |
Three Months Ended July 29, 2018 | |||||||||||||||
in millions | As Reported | % of Net Sales | ASU No. 2014-09 Impact | Excluding ASU No. 2014-09 Impact | % of Net Sales | ||||||||||
Net sales | $ | 30,463 | 100.0 | % | $ | 33 | $ | 30,430 | 100.0 | % | |||||
Cost of sales | 20,098 | 66.0 | (119 | ) | 20,217 | 66.4 | |||||||||
Gross profit | 10,365 | 34.0 | 152 | 10,213 | 33.6 | ||||||||||
Selling, general and administrative | 5,004 | 16.4 | 152 | 4,852 | 15.9 | ||||||||||
Total operating expenses | 5,464 | 17.9 | 152 | 5,312 | 17.5 |
Six Months Ended July 29, 2018 | |||||||||||||||
in millions | As Reported | % of Net Sales | ASU No. 2014-09 Impact | Excluding ASU No. 2014-09 Impact | % of Net Sales | ||||||||||
Net sales | $ | 55,410 | 100.0 | % | $ | 66 | $ | 55,344 | 100.0 | % | |||||
Cost of sales | 36,428 | 65.7 | (217 | ) | 36,645 | 66.2 | |||||||||
Gross profit | 18,982 | 34.3 | 283 | 18,699 | 33.8 | ||||||||||
Selling, general and administrative | 9,783 | 17.7 | 283 | 9,500 | 17.2 | ||||||||||
Total operating expenses | 10,700 | 19.3 | 283 | 10,417 | 18.8 |
July 29, 2018 | |||||||||||
in millions | As Reported | ASU No. 2014-09 Effect | Excluding ASU No. 2014-09 Effect | ||||||||
Assets | |||||||||||
Receivables, net | $ | 2,164 | $ | (46 | ) | $ | 2,210 | ||||
Other current assets | 1,104 | 272 | 832 | ||||||||
Total current assets | 20,802 | 226 | 20,576 | ||||||||
Total assets | 46,232 | 226 | 46,006 | ||||||||
Liabilities and Stockholders' Equity | |||||||||||
Other current liabilities | $ | 5,281 | $ | 127 | $ | 5,154 | |||||
Total current liabilities | 18,426 | 127 | 18,299 | ||||||||
Other liabilities | 2,502 | 24 | 2,478 | ||||||||
Total liabilities | 44,223 | 151 | 44,072 | ||||||||
Total stockholders’ equity | 2,009 | 75 | 1,934 | ||||||||
Total liabilities and stockholders’ equity | 46,232 | 226 | 46,006 |
Three Months Ended April 30, 2017 | |||||||||||||||
in millions | As Reported | % of Net Sales | ASU No. 2014-09 Effect | Including ASU No. 2014-09 Effect | % of Net Sales | ||||||||||
Net sales | $ | 23,887 | 100.0 | % | $ | 48 | $ | 23,935 | 100.0 | % | |||||
Cost of sales | 15,733 | 65.9 | (90 | ) | 15,643 | 65.4 | |||||||||
Gross profit | 8,154 | 34.1 | 138 | 8,292 | 34.6 | ||||||||||
Selling, general and administrative | 4,361 | 18.3 | 138 | 4,499 | 18.8 | ||||||||||
Total operating expenses | 4,805 | 20.1 | 138 | 4,943 | 20.7 |
Three Months Ended July 30, 2017 | |||||||||||||||
in millions | As Reported | % of Net Sales | ASU No. 2014-09 Effect | Including ASU No. 2014-09 Effect | % of Net Sales | ||||||||||
Net sales | $ | 28,108 | 100.0 | % | $ | 33 | $ | 28,141 | 100.0 | % | |||||
Cost of sales | 18,647 | 66.3 | (114 | ) | 18,533 | 65.9 | |||||||||
Gross profit | 9,461 | 33.7 | 147 | 9,608 | 34.1 | ||||||||||
Selling, general and administrative | 4,549 | 16.2 | 147 | 4,696 | 16.7 | ||||||||||
Total operating expenses | 4,998 | 17.8 | 147 | 5,145 | 18.3 |
Three Months Ended October 29, 2017 | |||||||||||||||
in millions | As Reported | % of Net Sales | ASU No. 2014-09 Effect | Including ASU No. 2014-09 Effect | % of Net Sales | ||||||||||
Net sales | $ | 25,026 | 100.0 | % | $ | 44 | $ | 25,070 | 100.0 | % | |||||
Cost of sales | 16,378 | 65.4 | (85 | ) | 16,293 | 65.0 | |||||||||
Gross profit | 8,648 | 34.6 | 129 | 8,777 | 35.0 | ||||||||||
Selling, general and administrative | 4,514 | 18.0 | 129 | 4,643 | 18.5 | ||||||||||
Total operating expenses | 4,968 | 19.9 | 129 | 5,097 | 20.3 |
Three Months Ended January 28, 2018 | |||||||||||||||
in millions | As Reported | % of Net Sales | ASU No. 2014-09 Effect | Including ASU No. 2014-09 Effect | % of Net Sales | ||||||||||
Net sales | $ | 23,883 | 100.0 | % | $ | 41 | $ | 23,924 | 100.0 | % | |||||
Cost of sales | 15,790 | 66.1 | (85 | ) | 15,705 | 65.6 | |||||||||
Gross profit | 8,093 | 33.9 | 126 | 8,219 | 34.4 | ||||||||||
Selling, general and administrative | 4,440 | 18.6 | 126 | 4,566 | 19.1 | ||||||||||
Total operating expenses | 4,904 | 20.5 | 126 | 5,030 | 21.0 |
Fiscal Year Ended January 28, 2018 | |||||||||||||||
in millions | As Reported | % of Net Sales | ASU No. 2014-09 Effect | Including ASU No. 2014-09 Effect | % of Net Sales | ||||||||||
Net sales | $ | 100,904 | 100.0 | % | $ | 166 | $ | 101,070 | 100.0 | % | |||||
Cost of sales | 66,548 | 66.0 | (374 | ) | 66,174 | 65.5 | |||||||||
Gross profit | 34,356 | 34.0 | 540 | 34,896 | 34.5 | ||||||||||
Selling, general and administrative | 17,864 | 17.7 | 540 | 18,404 | 18.2 | ||||||||||
Total operating expenses | 19,675 | 19.5 | 540 | 20,215 | 20.0 |