Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 2, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-8207 THE HOME DEPOT, INC. (Exact name of registrant as specified in its charter) Delaware 95-3261426 (State or ...

Financial Data and Key Metrics Changes - Total sales for the second quarter were $38.1 billion, a 23.4% increase from the previous year [10][26] - Comparable sales were up 23.4%, with U.S. comps at 25% [10][26] - Diluted earnings per share were $4.02, reflecting a 26.8% increase compared to the second quarter of 2019 [30] - Gross margin was 34%, an increase of approximately 20 basis points from last year [27] - Operating margin for the second quarter was approximately 15.9%, an increase of about 10 basis points from last year [29] Business Line Data and Key Metrics Changes - 13 of 14 merchandising departments posted double-digit comps, with notable strength in lumber and kitchen and bath departments [19][20] - Comp average ticket increased by 10.1%, driven by an increase in basket size and customers trading up to new items [19] - Big ticket comp transactions (over $1,000) were approximately 16% [20] Market Data and Key Metrics Changes - All 19 U.S. regions posted double-digit positive comps, with Canadian business reporting record sales [26] - Mexico's performance was initially negative but turned positive by the end of the quarter [27] Company Strategy and Development Direction - The company is focused on enhancing the interconnected shopping experience and leveraging digital platforms, with digital sales increasing approximately 100% in the quarter [12][13] - Strategic investments are aimed at creating a Pro ecosystem and enhancing customer engagement across both Pro and DIY segments [21][22] - The company is committed to maintaining a strong liquidity position while continuing to invest in growth opportunities [31] Management's Comments on Operating Environment and Future Outlook - Management expressed caution in extrapolating trends from the first half of the year due to uncertainty surrounding COVID-19 [11] - There is a belief in the resilience of home improvement demand over the long term, as the home represents a significant asset for customers [32] - The company is focused on operating with discipline and flexibility to grow market share regardless of demand patterns [32] Other Important Information - The company spent approximately $1.3 billion on enhanced associate pay and benefits in response to COVID-19 [9][10] - Merchandise inventories declined by $1.2 billion to $13.5 billion, driven by steady demand [30] Q&A Session Summary Question: Margin potential of the business - Management indicated that investments are aimed at long-term growth and incremental operating margin dollar growth rather than focusing solely on margin rates [36][37] Question: Pro business performance - Pro sales grew double digits, with notable strength in smaller Pro customers, while larger Pro customers are rebounding as permitting and job inspections resume [41][42] Question: Gross margin dynamics - Management noted that the cancellation of annual events impacted gross margin, with ongoing efforts to address shrink and mix pressures [44][45] Question: Workforce benefits - Approximately $480 million was invested in enhanced benefits, with a significant portion continuing into the third quarter [48][49] Question: Lumber inflation implications - Lumber prices have reached record highs, but supply is expected to improve, potentially moderating prices in the future [52] Question: E-commerce behavior - Both DIY and Pro customers showed strong engagement in e-commerce, with significant growth in online sales and customer interactions [54][55] Question: Category performance - Strong performance was noted across all categories, with double-digit growth in most, and management is optimistic about sustaining this momentum [61][62]

Summary of The Home Depot, Inc. Conference Call Company Overview - **Company**: The Home Depot, Inc. (NYSE: HD) - **Event**: Bernstein's 36th Annual Strategic Decisions Conference - **Date**: May 28, 2020 Key Points Industry Context - The retail industry, particularly home improvement, is experiencing significant changes due to the COVID-19 pandemic, affecting operational strategies and customer behavior [4][10][38]. Operational Adjustments - The company implemented a new operating rhythm, including twice-daily calls with field leadership to gather real-time feedback and make cross-functional decisions [4][5]. - Safety and well-being of associates and customers were prioritized, leading to operational hour adjustments and the implementation of social distancing measures [7][8]. - Curbside pickup was introduced within 48 hours to accommodate customers while maintaining safety protocols [9][10]. Customer Behavior and Market Trends - There has been a resurgence in do-it-yourself (DIY) projects as customers are spending more time at home [13][14]. - The company noted a significant increase in online orders, with over 60% of orders picked up in-store, indicating a shift towards omnichannel shopping [11][24]. - The pandemic has led to changes in customer preferences, with a focus on cleaning products and touchless solutions [15][19]. Financial Performance and Future Outlook - The company experienced a strong start to 2020, with expectations for continued positive performance as the housing market remains favorable [38]. - Home Depot is committed to maintaining its dividend and exploring acquisition opportunities while managing costs effectively [41][42]. - The company anticipates a return to normal promotional activities in the latter half of the year, depending on market conditions [33][32]. Supply Chain and Product Strategy - The company is adapting its supply chain to reduce reliance on China and is exploring alternative sourcing options [45][46]. - There is a focus on private label products to enhance innovation and value for customers, particularly in the PPE and cleaning categories [35][36]. Employee and Wage Considerations - Wage pressure is expected to continue due to competitive labor market conditions, with a focus on providing competitive wages and benefits [28][27]. Long-term Vision - Home Depot aims to capture a larger share of the $650 billion North American market by enhancing its interconnected retail experience and leveraging new customer engagement opportunities [71][72][73]. Conclusion - The Home Depot is navigating the challenges posed by the pandemic with a focus on safety, operational efficiency, and customer engagement, positioning itself for future growth in the home improvement sector [74][75].

Summary of The Home Depot, Inc. Conference Call Company Overview - **Company**: The Home Depot, Inc. (NYSE: HD) - **Date**: May 27, 2020 - **Participants**: Richard McPhail (CFO), Isabel Janci (Head of Investor Relations), Scot Ciccarelli (RBC Capital Markets) Key Points Industry Context - The call took place during the COVID-19 pandemic, which significantly impacted retail operations and consumer behavior [3][4] Demand Trends - **Initial Strong Performance**: February showed positive mid-single to low double-digit comparable sales across all departments [5] - **Impact of COVID-19**: - Demand shifted as customers prepared for COVID, increasing sales in cleaning and safety categories [6] - Sales performance turned negative due to shelter-in-place orders and self-imposed restrictions, leading to a drop in comparable sales by several hundred basis points [7] - The company canceled its annual spring Black Friday event to limit customer traffic [7] - **Sales Recovery**: - Sales rebounded in week 11 as stimulus checks were distributed and curbside pickup was introduced, leading to double-digit growth in comparable sales [8] Geographic Performance - Positive comparable sales were reported in all regions except New York metro and South Florida, which were heavily impacted by COVID-19 [10] Customer Segments - Both Pro and DIY customer segments experienced growth, but larger Pro customers faced challenges due to nonessential project restrictions [12][13] - Demand for home improvement projects remained strong, with customers postponing rather than canceling installations [13] E-commerce Growth - Significant surge in e-commerce activity, with traffic levels exceeding those of Black Friday and Cyber Monday [17] - App downloads and customer engagement metrics saw substantial increases [18] - The company is optimistic about the long-term impact of these e-commerce capabilities, although it is too early to predict permanent shifts in customer behavior [19] Operational Flexibility - Investments in IT infrastructure allowed for rapid adaptation to new operational needs, such as curbside pickup [22][23] - The company emphasized the importance of flexibility in operations to meet customer needs during the pandemic [23] Financial Impact of COVID-19 - The company incurred approximately $850 million in incremental expenses due to COVID-19, primarily related to paid leave for associates [31][32] - $700 million was accrued for paid leave benefits, while $150 million was for ongoing payments and bonuses [32][33] ESG and Sustainability - ESG initiatives are foundational to the company's strategy, focusing on people, community strengthening, and sustainable operations [37] - The company is on track with its carbon emissions and chemical reduction goals, reflecting a commitment to sustainability [39] Future Outlook - The company remains cautious about extrapolating future trends in the housing market due to the uncertain economic environment [27] - There is no indication of customers trading down in product categories, despite economic pressures [30] Additional Insights - The company has seen a re-engagement of customers in DIY projects, indicating a potential shift in consumer spending priorities towards home improvement [15] - The management expressed confidence in the investments made over the years, which have positioned the company well to handle current challenges [25]

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The Home Depot, Inc. (NYSE:HD) Q1 2020 Earnings Conference Call May 19, 2020 9:00 AM ET Company Participants Isabel Janci - Investor Relations Craig Menear - Chairman, President and Chief Executive Officer Ted Decker - Executive Vice President, Merchandising Richard McPhail - Executive Vice President and Chief Financial Officer Mark Holifield - Executive Vice President, Supply Chain and Product Development Conference Call Participants Mike Lasser - UBS Scot Ciccarelli - RBC Simeon Gutman - Morgan Stanley Ka ...

Table of Contents Title of each class Trading Symbol Name of each exchange on which registered UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 2, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-8207 THE HOME DEPOT, INC. (Exact name of ...

The Home Depot, Inc. (NYSE:HD) Q4 2019 Results Earnings Conference Call February 25, 2020 9:00 AM ET Company Participants Isabel Janci - Vice President, IR Craig Menear - Chairman, President and CEO Ted Decker - Executive Vice President, Merchandising Richard McPhail - Executive Vice President and CFO Mark Holifield - Executive Vice President, Supply Chain And Product Development Conference Call Participants Michael Lasser - UBS Scot Ciccarelli - RBC Simeon Gutman - Morgan Stanley Chuck Grom - Gordon Hasket ...

Summary of The Home Depot, Inc. 2019 Investor and Analyst Conference Company Overview - **Company**: The Home Depot, Inc. (NYSE: HD) - **Date of Conference**: December 11, 2019 - **Key Participants**: Craig Menear (Chairman, President, and CEO), Richard McPhail (EVP and CFO), and other executives Core Industry Insights - **Industry**: Home Improvement Retail - **Market Position**: The Home Depot is the number one home improvement retailer, with a significant market share in a fragmented industry where many independent and regional players exist [9][35]. Key Messages from the Conference 1. **Competitive Advantages**: The Home Depot has built competitive advantages through a premier real estate footprint, a strong online presence, and a best-in-class supply chain, leading to over $25 billion in revenue growth and $5 billion in net earnings growth over the past five years [9][17]. 2. **Investment in Transformation**: The company is undergoing a transformation to create the "One Home Depot" experience, which integrates digital and physical shopping experiences. Investments in this initiative are nearly double what would have been spent in a business-as-usual scenario [11][16]. 3. **Customer-Centric Approach**: The investment strategy is customer-focused, aiming to enhance the shopping experience through improved technology and streamlined operations [12][15]. 4. **B2B Experience**: The Home Depot is enhancing its B2B capabilities to better serve professional customers, which represent about 45% of sales [20][21]. 5. **Supply Chain Investments**: A $1.2 billion investment over five years is committed to creating a fast and efficient delivery network for both DIY and Pro customers [21][22]. Financial Outlook - **2019 Guidance**: The company reaffirmed guidance for 3.5% comparable sales growth and diluted earnings per share of $10.30 [25]. - **2020 Preliminary Outlook**: Expected sales growth of 3.5% to 4%, with operating margin around 14% and return on invested capital of approximately 45% [30][33]. - **Investment Plans**: By the end of 2020, the company will have invested $5 billion in stores, $2.5 billion in technology, and $1.2 billion in supply chain improvements [26]. Macroeconomic Environment - **Supportive Conditions**: The U.S. consumer environment is healthy, with wage growth over 3% and the lowest unemployment rate in 50 years, supporting home improvement demand [28][29]. - **Housing Market**: The age of housing stock is increasing, with over 50% of homes over 40 years old, indicating a growing need for home improvement spending [29][30]. Challenges and Risks - **Shrinkage Issues**: The company is facing challenges with shrinkage, primarily due to organized retail crime, which has been exacerbated in recent years. Initiatives are being implemented to mitigate these losses [42][44][46]. - **Margin Pressure**: Operating margins are expected to face pressure due to increased investments and changes in product mix, particularly in lower-margin categories [32][66]. Additional Insights - **Customer Experience Enhancements**: Investments in technology and store layout are aimed at improving customer satisfaction and driving sales productivity [17][19]. - **Product Innovation**: The Home Depot is focusing on innovative products, particularly in appliances and power tools, to meet changing customer preferences [78][80]. Conclusion The Home Depot is committed to leveraging its competitive advantages and making significant investments to enhance customer experience and operational efficiency. The company is optimistic about its growth prospects in a supportive macroeconomic environment, despite facing challenges related to shrinkage and margin pressures.