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Form 8-K HOME DEPOT, INC. For: Aug 16

August 16, 2022 6:12 AM EDT

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________
FORM 8-K
__________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): August 16, 2022
__________________
THE HOME DEPOT, INC.
(Exact Name of Registrant as Specified in Charter)
 __________________
Delaware1-820795-3261426
(State or Other Jurisdiction
of Incorporation)
  (Commission
File Number)
  (IRS Employer
Identification No.)
2455 Paces Ferry Road, Atlanta, Georgia 30339
(Address of Principal Executive Offices) (Zip Code)
(770) 433-8211
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
  __________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of each exchange on which registered
Common Stock, $0.05 Par Value Per ShareHDNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



 
Item 2.02.     Results of Operations and Financial Condition.
On August 16, 2022, The Home Depot, Inc. (the “Company”) issued a press release, attached as Exhibit 99.1 and incorporated herein by reference, announcing the Company’s financial results for the fiscal quarter ended July 31, 2022.
The information contained in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of Section 18. Furthermore, the information contained in this Item 2.02 and Exhibit 99.1 shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.
Item 9.01.     Financial Statements and Exhibits.
 
Exhibit Description
 
104The cover page of this Current Report on Form 8-K formatted in Inline XBRL (included as Exhibit 101).
2


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
THE HOME DEPOT, INC.
By:/s/ Richard V. McPhail
Name:Richard V. McPhail
     Title:Executive Vice President and Chief Financial Officer
Date: August 15, 2022

3

Exhibit 99.1
hdlogoa02a01a01a01a01a21.jpg
The Home Depot Announces Second Quarter Results;
Reaffirms Fiscal 2022 Guidance


ATLANTA, August 16, 2022 -- The Home Depot®, the world's largest home improvement retailer, today reported sales of $43.8 billion for the second quarter of fiscal 2022, an increase of $2.7 billion, or 6.5 percent from the second quarter of fiscal 2021. Comparable sales for the second quarter of fiscal 2022 increased 5.8 percent, and comparable sales in the U.S. increased 5.4 percent.

Net earnings for the second quarter of fiscal 2022 were $5.2 billion, or $5.05 per diluted share, compared with net earnings of $4.8 billion, or $4.53 per diluted share, in the same period of fiscal 2021, representing an 11.5 percent increase in diluted earnings per share.

“In the second quarter, we delivered the highest quarterly sales and earnings in our company’s history,” said Ted Decker, CEO and president. “Our performance reflects continued strength in demand for home improvement projects. Our team has done a fantastic job serving our customers, while continuing to navigate a challenging and dynamic environment. I would like to thank them and our many partners for their hard work and dedication to our customers.”

Fiscal 2022 Guidance

The Company reaffirmed fiscal 2022 guidance of:

Total sales growth and comparable sales growth of approximately 3.0 percent
Operating margin of approximately 15.4 percent
Net interest expense of approximately $1.6 billion
Tax rate of approximately 24.6 percent
Diluted earnings-per-share-percent-growth to be mid-single digits

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 2,316 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.

###





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, results of operations, cash flows and financial condition (which, among other things, may affect many of the items listed below); the demand for our products and services; net sales growth; comparable sales; the effects of competition; our brand and reputation; implementation of store, interconnected retail, supply chain and technology initiatives; inventory and in-stock positions; the state of the economy; the state of the housing and home improvement markets; the 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, potential associates, suppliers and service providers; cost and availability of labor; costs of fuel and other energy sources; international trade disputes, natural disasters, climate change, public health issues (including pandemics and quarantines, related shut-downs and other governmental orders, and similar restrictions, as well as subsequent re-openings), cybersecurity events, military conflicts or acts of war, and other business interruptions that could disrupt operation of our stores, distribution centers and other facilities, our ability to operate or access communications, financial or banking systems, or supply or delivery of, or demand for, the Company’s products or services; our ability to meet environmental, social and governance (ESG) goals; 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; commodity or other price inflation and deflation; our 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 2022 and beyond; financial outlook; and the impact of acquired companies 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 historical experience and our expectations and projections. These risks and uncertainties include, but are not limited to, those described in Part I, Item 1A, “Risk Factors,” and elsewhere in our Annual Report on Form 10-K for our fiscal year ended January 30, 2022 and also may be described from time to time in future reports we file with the Securities and Exchange Commission (SEC). There also may be other factors that we cannot anticipate or that are not described herein, generally because we do not currently perceive them to be material. Such factors could cause results to differ materially from our expectations.

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 filings with the SEC and in our other public statements.

For more information, contact:
Financial CommunityNews Media
Isabel JanciSara Gorman
Vice President of Investor Relations and TreasurerSenior Director of Corporate Communications
770-384-2666770-384-2852
isabel_janci@homedepot.comsara_gorman@homedepot.com




THE HOME DEPOT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
 Three Months EndedSix Months Ended
in millions, except per share dataJuly 31,
2022
August 1,
2021
% ChangeJuly 31,
2022
August 1,
2021
% Change
Net sales$43,792 $41,118 6.5 %$82,700 $78,618 5.2 %
Cost of sales29,309 27,453 6.8 55,072 52,211 5.5 
Gross profit14,483 13,665 6.0 27,628 26,407 4.6 
Operating expenses:
Selling, general and administrative6,657 6,433 3.5 13,267 12,807 3.6 
Depreciation and amortization616 593 3.9 1,222 1,180 3.6 
Total operating expenses7,273 7,026 3.5 14,489 13,987 3.6 
Operating income7,210 6,639 8.6 13,139 12,420 5.8 
Interest and other (income) expense:
Interest income and other, net(2)(5)(60.0)(5)(11)(54.5)
Interest expense381 326 16.9 753 665 13.2 
Interest and other, net379 321 18.1 748 654 14.4 
Earnings before provision for income taxes
6,831 6,318 8.1 12,391 11,766 5.3 
Provision for income taxes1,658 1,511 9.7 2,987 2,814 6.1 
Net earnings$5,173 $4,807 7.6 %$9,404 $8,952 5.0 %
Basic weighted average common shares1,023 1,058 (3.3)%1,026 1,064 (3.6)%
Basic earnings per share$5.06 $4.54 11.5 $9.17 $8.41 9.0 
Diluted weighted average common shares1,025 1,062 (3.5)%1,030 1,068 (3.6)%
Diluted earnings per share$5.05 $4.53 11.5 $9.13 $8.38 8.9 
Three Months Ended Six Months Ended
Selected Sales Data (1)
July 31,
2022
August 1,
2021
% ChangeJuly 31,
2022
August 1,
2021
% Change
Customer transactions (in millions)467.4 481.7 (3.0)%878.1 928.9 (5.5)%
Average ticket $90.02 $82.48 9.1 $90.82 $82.43 10.2 
Sales per retail square foot
$700.62 $663.05 5.7 $661.27 $634.30 4.3 
 —————
(1)Selected Sales Data does not include results for HD Supply.



 






THE HOME DEPOT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
in millionsJuly 31,
2022
August 1,
2021
January 30,
2022
Assets
Current assets:
Cash and cash equivalents$1,259 $4,566 $2,343 
Receivables, net3,725 3,322 3,426 
Merchandise inventories26,088 18,909 22,068 
Other current assets1,869 1,465 1,218 
Total current assets32,941 28,262 29,055 
Net property and equipment25,247 24,750 25,199 
Operating lease right-of-use assets6,132 5,960 5,968 
Goodwill7,451 7,454 7,449 
Other assets4,054 4,343 4,205 
Total assets$75,825 $70,769 $71,876 
Liabilities and Stockholders' Equity
Current liabilities:
Short-term debt$539 $— $1,035 
Accounts payable14,348 12,817 13,462 
Accrued salaries and related expenses2,204 2,329 2,426 
Current installments of long-term debt1,218 2,428 2,447 
Current operating lease liabilities919 814 830 
Other current liabilities8,606 8,278 8,493 
Total current liabilities27,834 26,666 28,693 
Long-term debt, excluding current installments39,271 33,746 36,604 
Long-term operating lease liabilities5,431 5,360 5,353 
Other long-term liabilities3,052 2,928 2,922 
Total liabilities75,588 68,700 73,572 
Total stockholders’ equity (deficit)237 2,069 (1,696)
Total liabilities and stockholders’ equity$75,825 $70,769 $71,876 



THE HOME DEPOT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Six Months Ended
in millionsJuly 31,
2022
August 1,
2021
Cash Flows from Operating Activities:
Net earnings$9,404 $8,952 
Reconciliation of net earnings to net cash provided by operating activities:
Depreciation and amortization1,473 1,414 
Stock-based compensation expense196 226 
Changes in working capital(3,889)(603)
Changes in deferred income taxes(95)(116)
Other operating activities93 74 
Net cash provided by operating activities7,182 9,947 
Cash Flows from Investing Activities:
Capital expenditures(1,447)(1,042)
Payments for businesses acquired, net— (416)
Other investing activities(14)— 
Net cash used in investing activities(1,461)(1,458)
Cash Flows from Financing Activities:
Repayments of short-term debt, net(496)— 
Proceeds from long-term debt, net of discounts3,957 — 
Repayments of long-term debt(2,366)(1,434)
Repurchases of common stock(3,962)(6,905)
Proceeds from sales of common stock142 167 
Cash dividends(3,910)(3,526)
Other financing activities(163)(136)
Net cash used in financing activities(6,798)(11,834)
Change in cash and cash equivalents(1,077)(3,345)
Effect of exchange rate changes on cash and cash equivalents(7)16 
Cash and cash equivalents at beginning of period2,343 7,895 
Cash and cash equivalents at end of period$1,259 $4,566 



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