The Home Depot Announces First Quarter Results

May 18, 2021 6:00 AM EDT

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ATLANTA, May 18, 2021 /PRNewswire/ -- The Home Depot®, the world's largest home improvement retailer, today reported sales of $37.5 billion for the first quarter of fiscal 2021, an increase of $9.2 billion, or 32.7 percent from the first quarter of fiscal 2020. Comparable sales for the first quarter of fiscal 2021 increased 31.0 percent, and comparable sales in the U.S. increased 29.9 percent.

Net earnings for the first quarter of fiscal 2021 were $4.1 billion, or $3.86 per diluted share, compared with net earnings of $2.2 billion, or $2.08 per diluted share, in the same period of fiscal 2020. For the first quarter of fiscal 2021, diluted earnings per share increased 85.6 percent from the same period in the prior year.

"Fiscal 2021 is off to a strong start as we continue to build on the momentum from our strategic investments and effectively manage the unprecedented demand for home improvement projects," said Craig Menear, chairman and CEO. "I am proud of the resilience and strength our associates have continued to demonstrate, and I would like to thank them and our supplier partners for their hard work and dedication to our customers."

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 2,298 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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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 impact of the COVID-19 pandemic and the related recovery on our business, operations and financial results (which, among other things, may affect many of the items listed below); the demand for our products and services; net sales growth; comparable sales; effects of competition; our brand and reputation; implementation of store, interconnected retail, supply chain and technology initiatives; inventory and in-stock positions; state of the economy; state of the housing and home improvement markets; state of the credit markets, including mortgages, home equity loans and consumer credit; impact of tariffs; issues related to the payment methods we accept; demand for credit offerings; management of relationships with our associates, suppliers and service providers; international trade disputes, natural disasters, public health issues (including pandemics and quarantines, related shut-downs and other governmental orders, and similar restrictions, as well as subsequent re-openings), and other business interruptions that could disrupt supply or delivery of, or demand for, the Company's products or services; continuation or suspension of share repurchases; 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 impact and expected outcome of investigations, inquiries, claims and litigation, including compliance with related settlements; the effect of accounting charges; the effect of adopting certain accounting standards; the impact of regulatory changes, including changes to tax laws and regulations; store openings and closures; guidance for fiscal 2021 and beyond; financial outlook; and the impact of acquired companies, including HD Supply Holdings, Inc., on our organization and the ability to recognize the anticipated benefits of those acquisitions. 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, dependent on the actions of third parties, 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 31, 2021 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.

 

THE HOME DEPOT, INC.CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS(Unaudited)

Three Months Ended

in millions, except per share data

May 2,2021

May 3,2020

% Change

Net sales

$

37,500

$

28,260

32.7

%

Cost of sales

24,758

18,635

32.9

 Gross profit

12,742

9,625

32.4

Operating expenses:

Selling, general and administrative

6,374

5,829

9.3

Depreciation and amortization

587

520

12.9

 Total operating expenses

6,961

6,349

9.6

Operating income

5,781

3,276

76.5

Interest and other (income) expense:

Interest and investment income

(6)

(17)

(64.7)

Interest expense

339

324

4.6

Interest and other, net

333

307

8.5

Earnings before provision for income taxes

5,448

2,969

83.5

Provision for income taxes

1,303

724

80.0

Net earnings

$

4,145

$

2,245

84.6

%

Basic weighted average common shares

1,071

1,073

(0.2)

%

Basic earnings per share

$

3.87

$

2.09

85.2

Diluted weighted average common shares

1,075

1,077

(0.2)

%

Diluted earnings per share

$

3.86

$

2.08

85.6

Three Months Ended

Selected Sales Data (1)

May 2,2021

May 3,2020

% Change

Customer transactions (in millions)

447.2

374.8

19.3

%

Average ticket

$

82.37

$

74.70

10.3

Sales per retail square foot

$

605.60

$

466.58

29.8

————

(1)  Selected Sales Data does not include results for the legacy Interline Brands business or results for HD Supply Holdings, Inc.

 

THE HOME DEPOT, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)

in millions

May 2,2021

May 3,2020

January 31,2021

Assets

Current assets:

Cash and cash equivalents

$

6,648

$

8,696

$

7,895

Receivables, net

3,624

2,610

2,992

Merchandise inventories

19,178

14,989

16,627

Other current assets

1,222

982

963

Total current assets

30,672

27,277

28,477

Net property and equipment

24,673

22,697

24,705

Operating lease right-of-use assets

5,864

5,634

5,962

Goodwill

7,137

2,220

7,126

Other assets

4,221

909

4,311

Total assets

$

72,567

$

58,737

$

70,581

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$

14,494

$

10,056

$

11,606

Accrued salaries and related expenses

2,167

1,974

2,463

Current installments of long-term debt

1,164

4,200

1,416

Current operating lease liabilities

803

853

828

Other current liabilities

9,130

6,265

6,853

Total current liabilities

27,758

23,348

23,166

Long-term debt, excluding current installments

34,697

31,622

35,822

Long-term operating lease liabilities

5,279

5,075

5,356

Other liabilities

3,085

2,182

2,938

Total liabilities

70,819

62,227

67,282

Total stockholders' equity (deficit)

1,748

(3,490)

3,299

Total liabilities and stockholders' equity

$

72,567

$

58,737

$

70,581

 

THE HOME DEPOT, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)

Three Months Ended

in millions

May 2,2021

May 3,2020

Cash Flows from Operating Activities:

Net earnings

$

4,145

$

2,245

Reconciliation of net earnings to net cash provided by operating activities:

Depreciation and amortization

703

607

Stock-based compensation expense

146

88

Changes in working capital

1,301

2,834

Changes in deferred income taxes

(87)

(68)

Other operating activities

102

31

 Net cash provided by operating activities

6,310

5,737

Cash Flows from Investing Activities:

Capital expenditures

(524)

(586)

Other investing activities

(4)

8

 Net cash used in investing activities

(528)

(578)

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

(1,390)

(27)

Repurchases of common stock

(3,788)

(791)

Proceeds from sales of common stock

13

18

Cash dividends

(1,775)

(1,611)

Other financing activities

(130)

(125)

 Net cash (used in) provided by financing activities

(7,070)

1,450

Change in cash and cash equivalents

(1,288)

6,609

Effect of exchange rate changes on cash and cash equivalents

41

(46)

Cash and cash equivalents at beginning of period

7,895

2,133

 Cash and cash equivalents at end of period

$

6,648

$

8,696

 

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SOURCE The Home Depot



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