Delaware | 1-8207 | 95-3261426 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Exhibit | Description | |
THE HOME DEPOT, INC. | ||
By: | /s/ Carol B. Tomé | |
Name: | Carol B. Tomé | |
Title: | Chief Financial Officer and Executive Vice President – Corporate Services |
▪ | Sales growth of approximately 7.2 percent; |
▪ | Comp sales growth of approximately 5.5 percent for the comparable 52-week period; |
▪ | Operating margin of approximately 14.5 percent; |
▪ | Tax rate of approximately 24 percent; |
▪ | Fiscal 2018 share repurchases of approximately $8 billion; |
▪ | Diluted earnings-per-share growth of approximately 33.8 percent from fiscal 2017 to $9.75. |
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 | Nine Months Ended | ||||||||||||||||||||
in millions, except per share data | October 28, 2018 | October 29, 2017 | % Change | October 28, 2018 | October 29, 2017 | % Change | |||||||||||||||
Net sales | $ | 26,302 | $ | 25,026 | 5.1 | % | $ | 81,712 | $ | 77,021 | 6.1 | % | |||||||||
Cost of sales | 17,151 | 16,378 | 4.7 | 53,579 | 50,758 | 5.6 | |||||||||||||||
Gross profit | 9,151 | 8,648 | 5.8 | 28,133 | 26,263 | 7.1 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||
Selling, general and administrative | 4,808 | 4,514 | 6.5 | 14,591 | 13,424 | 8.7 | |||||||||||||||
Depreciation and amortization | 473 | 454 | 4.2 | 1,390 | 1,347 | 3.2 | |||||||||||||||
Total operating expenses | 5,281 | 4,968 | 6.3 | 15,981 | 14,771 | 8.2 | |||||||||||||||
Operating income | 3,870 | 3,680 | 5.2 | 12,152 | 11,492 | 5.7 | |||||||||||||||
Interest and other (income) expense: | |||||||||||||||||||||
Interest and investment income | (25 | ) | (22 | ) | 13.6 | (73 | ) | (51 | ) | 43.1 | |||||||||||
Interest expense | 249 | 269 | (7.4 | ) | 782 | 788 | (0.8 | ) | |||||||||||||
Interest and other, net | 224 | 247 | (9.3 | ) | 709 | 737 | (3.8 | ) | |||||||||||||
Earnings before provision for income taxes | 3,646 | 3,433 | 6.2 | 11,443 | 10,755 | 6.4 | |||||||||||||||
Provision for income taxes | 779 | 1,268 | (38.6 | ) | 2,666 | 3,904 | (31.7 | ) | |||||||||||||
Net earnings | $ | 2,867 | $ | 2,165 | 32.4 | % | $ | 8,777 | $ | 6,851 | 28.1 | % | |||||||||
Basic weighted average common shares | 1,135 | 1,168 | (2.8 | )% | 1,144 | 1,184 | (3.4 | )% | |||||||||||||
Basic earnings per share | $ | 2.53 | $ | 1.85 | 36.8 | $ | 7.67 | $ | 5.79 | 32.5 | |||||||||||
Diluted weighted average common shares | 1,141 | 1,174 | (2.8 | )% | 1,150 | 1,190 | (3.4 | )% | |||||||||||||
Diluted earnings per share | $ | 2.51 | $ | 1.84 | 36.4 | $ | 7.63 | $ | 5.76 | 32.5 | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
Selected Sales Data(1) | October 28, 2018 | October 29, 2017 | % Change | October 28, 2018 | October 29, 2017 | % Change | |||||||||||||||
Customer transactions (in millions) | 394.8 | 389.5 | 1.4 | % | 1,226.0 | 1,212.0 | 1.2 | % | |||||||||||||
Average ticket | $ | 65.11 | $ | 62.84 | 3.6 | $ | 65.79 | $ | 62.78 | 4.8 | |||||||||||
Sales per square foot | 433.99 | 412.49 | 5.2 | 449.94 | 423.60 | 6.2 |
(1) | Selected Sales Data does not include results for Interline Brands, Inc., which was acquired in fiscal 2015. |
in millions | October 28, 2018 | October 29, 2017 | January 28, 2018 | ||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 1,764 | $ | 3,549 | $ | 3,595 | |||||
Receivables, net | 2,171 | 2,166 | 1,952 | ||||||||
Merchandise inventories | 14,754 | 13,419 | 12,748 | ||||||||
Other current assets | 1,120 | 548 | 638 | ||||||||
Total current assets | 19,809 | 19,682 | 18,933 | ||||||||
Net property and equipment | 22,054 | 21,960 | 22,075 | ||||||||
Goodwill | 2,258 | 2,217 | 2,275 | ||||||||
Other assets | 1,079 | 1,164 | 1,246 | ||||||||
Total assets | $ | 45,200 | $ | 45,023 | $ | 44,529 | |||||
Liabilities and Stockholders' Equity | |||||||||||
Short-term debt | $ | 1,398 | $ | 125 | $ | 1,559 | |||||
Accounts payable | 9,054 | 8,570 | 7,244 | ||||||||
Accrued salaries and related expenses | 1,495 | 1,488 | 1,640 | ||||||||
Current installments of long-term debt | 1,054 | 1,198 | 1,202 | ||||||||
Other current liabilities | 5,195 | 4,621 | 4,549 | ||||||||
Total current liabilities | 18,196 | 16,002 | 16,194 | ||||||||
Long-term debt, excluding current installments | 23,332 | 24,266 | 24,267 | ||||||||
Other liabilities | 2,352 | 2,212 | 2,614 | ||||||||
Total liabilities | 43,880 | 42,480 | 43,075 | ||||||||
Total stockholders’ equity | 1,320 | 2,543 | 1,454 | ||||||||
Total liabilities and stockholders’ equity | $ | 45,200 | $ | 45,023 | $ | 44,529 |
Nine Months Ended | |||||||
in millions | October 28, 2018 | October 29, 2017 | |||||
Cash Flows from Operating Activities: | |||||||
Net earnings | $ | 8,777 | $ | 6,851 | |||
Reconciliation of net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | 1,603 | 1,533 | |||||
Stock-based compensation expense | 204 | 214 | |||||
Changes in working capital and other, net of acquisition effects | (548 | ) | 1,143 | ||||
Net cash provided by operating activities | 10,036 | 9,741 | |||||
Cash Flows from Investing Activities: | |||||||
Capital expenditures, net of non-cash capital expenditures | (1,711 | ) | (1,354 | ) | |||
Payments for business acquired, net | — | (260 | ) | ||||
Proceeds from sales of property and equipment | 21 | 38 | |||||
Other investing activities | (3 | ) | — | ||||
Net cash used in investing activities | (1,693 | ) | (1,576 | ) | |||
Cash Flows from Financing Activities: | |||||||
Repayments of short-term debt, net | (161 | ) | (585 | ) | |||
Proceeds from long-term debt, net of discounts | — | 2,991 | |||||
Repayments of long-term debt | (1,192 | ) | (534 | ) | |||
Repurchases of common stock | (5,518 | ) | (6,067 | ) | |||
Proceeds from sales of common stock | 140 | 157 | |||||
Cash dividends | (3,548 | ) | (3,174 | ) | |||
Other financing activities | 99 | (41 | ) | ||||
Net cash used in financing activities | (10,180 | ) | (7,253 | ) | |||
Change in cash and cash equivalents | (1,837 | ) | 912 | ||||
Effect of exchange rate changes on cash and cash equivalents | 6 | 99 | |||||
Cash and cash equivalents at beginning of period | 3,595 | 2,538 | |||||
Cash and cash equivalents at end of period | $ | 1,764 | $ | 3,549 |
Three Months Ended October 28, 2018 | |||||||||||||||||
in millions | As Reported | % of Net Sales | ASU No. 2014-09 Impact | Excluding ASU No. 2014-09 Impact | % of Net Sales | ||||||||||||
Net sales | $ | 26,302 | 100.0 | % | $ | 64 | $ | 26,238 | 100.0 | % | |||||||
Cost of sales | 17,151 | 65.2 | (83 | ) | 17,234 | 65.7 | |||||||||||
Gross profit | 9,151 | 34.8 | 147 | 9,004 | 34.3 | ||||||||||||
Selling, general and administrative | 4,808 | 18.3 | 147 | 4,661 | 17.8 | ||||||||||||
Total operating expenses | 5,281 | 20.1 | 147 | 5,134 | 19.6 |
Nine Months Ended October 28, 2018 | |||||||||||||||||
in millions | As Reported | % of Net Sales | ASU No. 2014-09 Impact | Excluding ASU No. 2014-09 Impact | % of Net Sales | ||||||||||||
Net sales | $ | 81,712 | 100.0 | % | $ | 130 | $ | 81,582 | 100.0 | % | |||||||
Cost of sales | 53,579 | 65.6 | (300 | ) | 53,879 | 66.0 | |||||||||||
Gross profit | 28,133 | 34.4 | 430 | 27,703 | 34.0 | ||||||||||||
Selling, general and administrative | 14,591 | 17.9 | 430 | 14,161 | 17.4 | ||||||||||||
Total operating expenses | 15,981 | 19.6 | 430 | 15,551 | 19.1 |
October 28, 2018 | |||||||||||
in millions | As Reported | ASU No. 2014-09 Impact | Excluding ASU No. 2014-09 Impact | ||||||||
Assets | |||||||||||
Receivables, net | $ | 2,171 | $ | (44 | ) | $ | 2,215 | ||||
Other current assets | 1,120 | 268 | 852 | ||||||||
Total current assets | 19,809 | 224 | 19,585 | ||||||||
Total assets | 45,200 | 224 | 44,976 | ||||||||
Liabilities and Stockholders' Equity | |||||||||||
Other current liabilities | $ | 5,195 | $ | 125 | $ | 5,070 | |||||
Total current liabilities | 18,196 | 125 | 18,071 | ||||||||
Other liabilities | 2,352 | 24 | 2,328 | ||||||||
Total liabilities | 43,880 | 149 | 43,731 | ||||||||
Total stockholders’ equity | 1,320 | 75 | 1,245 | ||||||||
Total liabilities and stockholders’ equity | 45,200 | 224 | 44,976 |
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 |
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