The Home Depot, Inc. (NYSE:HD) Q3 2021 Earnings Conference Call November 16, 2021 9:00 AM ET Company Participants Isabel Janci – Investor Relations & Treasurer Craig Menear – Chairman and CEO Ted Decker – President and Chief Operating Officer Richard Mcphail – Executive Vice President and Chief Financial Officer Conference Call Participants Simeon Gutman – Morgan Stanley Michael Lasser – UBS Steven Forbes – Guggenheim Michael Baker – DA Davidson Chuck Grom – Gordon Haskett Christopher Horvers – JPMorgan Kar ...

Summary of The Home Depot, Inc. Conference Call Company Overview - **Company**: The Home Depot, Inc. (NYSE: HD) - **Participants**: Craig Menear (Chairman & CEO), Ted Decker (President & COO), Isabel Janci (VP of Investor Relations) Industry Insights - **Housing Market**: The macro environment remains strong for the housing market with ongoing home price appreciation, aging housing stock, and low mortgage rates [4][5] - **Demand Outlook**: Despite significant spending in recent years, there is potential for continued demand in home improvement due to increased customer engagement and a backlog of projects [5][6] - **Millennial Engagement**: The pandemic has accelerated millennial homeownership and engagement in DIY projects, leading to increased sales in categories like paint [9][11][12] Company Performance - **Sales Growth**: The company has grown by $34 billion over the last six quarters, indicating strong customer engagement [5][30] - **Market Share**: Home Depot gained approximately 275 basis points of market share, translating to about $10 billion in incremental volume per year from 2018 to 2020 [15][37] - **Pro vs. DIY Growth**: The Pro segment has outpaced DIY in recent quarters, attributed to recovery in urban environments and increased comfort among customers for home projects [20][21] Strategic Initiatives - **Investment in Supply Chain**: Home Depot is investing in supply chain capabilities to enhance operational efficiency and customer service, aiming to serve 90% of the U.S. population with same-day or next-day delivery [39][40] - **Product Innovation**: The company emphasizes innovation, particularly in cordless and battery-operated tools, which has positively impacted average ticket prices [22][26][27] - **Digital Engagement**: Digital penetration peaked during the pandemic but has stabilized; the company focuses on enhancing digital capabilities to improve customer engagement [52][55] Challenges and Responses - **Supply Chain Bottlenecks**: The company has faced challenges in supply chain logistics, including port backups and container shortages, but has improved in-stock levels and distribution efficiency [30][31][33] - **Inflation Impact**: Home Depot is experiencing cost-led inflation across product costs, supply chain, and wages, but is actively working to mitigate these impacts while maintaining value for customers [44][46] Future Outlook - **Sales Projections**: The company remains optimistic about medium to long-term growth in home improvement, despite uncertainties in consumer behavior post-pandemic [49][50] - **Promotional Strategy**: Home Depot is shifting towards an everyday low-price model, reducing promotional events to provide consistent value to customers, particularly in the Pro segment [57][58] - **Inventory Management**: The company expects inventory growth to remain slower than sales as it normalizes operations post-pandemic [60] Key Takeaways - Home Depot is well-positioned to capitalize on ongoing trends in home improvement and millennial engagement - Strategic investments in supply chain and product innovation are critical to maintaining competitive advantage - The company is navigating challenges in supply chain logistics and inflation while focusing on customer value and market share growth

The Home Depot, Inc. (NYSE:HD) The Home Depot, Inc. - Special Call September 9, 2021 10:30 AM ET Company Participants Isabel Janci - Vice President-Investor Relations & Treasurer Ron Jarvis - Chief Sustainability Officer Conference Call Participants Operator Good morning, and welcome to The Home Depot's Investor ESG Webcast. Today's event will consist of prepared remarks followed by a question-and-answer session. In your webcast viewer, please use the Submit a Question box to submit a question for today’s e ...

The Home Depot, Inc. (NYSE:HD) Q2 2021 Earnings Conference Call August 17, 2021 9:00 AM ET Company Participants Isabel Janci - Vice President, Investor Relations & Treasurer Craig Menear – Chairman and CEO Ted Decker – President and Chief Operating Officer Richard McPhail – Executive Vice President and CFO Conference Call Participants Simeon Gutman – Morgan Stanley Michael Lasser – UBS Chuck Grom – Gordon Haskett Karen Short – Barclays Brian Nagel – Oppenheimer Zach Fadem – Wells Fargo Liz Suzuki – Bank of ...

Summary of Home Depot's Conference Call Company Overview - **Company**: The Home Depot, Inc. (NYSE: HD) - **Event**: Alliance Bernstein 37th Annual Strategic Decisions Conference - **Date**: June 3, 2021 Key Industry Insights - **Inflation and Pricing**: Home Depot is experiencing cost pressures due to inflation, which is not new. The company is focused on delivering value to customers while managing these pressures by working with suppliers and seeking cost opportunities within its own operations [3][4][5] - **Omni-Channel Strategy**: The pandemic accelerated the shift towards online shopping, with Home Depot seeing a peak of over 20% penetration in buy online, pickup in-store (BOPIS) during 2020. The company believes that the interconnected approach of blending physical and digital shopping will remain important [7][8][9] - **Professional Business Growth**: Home Depot's professional business has shown sequential improvement since Q2 2020, with the first quarter of 2021 seeing the Pro business outgrowing the DIY segment for the first time since the pandemic [15][16] Financial Performance and Market Position - **Market Share**: Home Depot believes it gained market share in online sales during 2020, despite competition from Amazon and Walmart. The company reported strong consistency in business performance across quarters [11][12] - **M&A Strategy**: The acquisition of HD Supply positions Home Depot to better serve the multi-family market, which consists of approximately 50 million households in the U.S. This market is valued at $55 billion and remains highly fragmented, presenting significant growth opportunities [24][25][60][61] Operational Strategies - **Supply Chain Investments**: Home Depot is investing $1.2 billion in supply chain capabilities to enhance service delivery, aiming to serve 90% of the population with same-day or next-day delivery options [54][55] - **Private Label Products**: The company has developed a strong private label program, with several brands exceeding $1 billion in sales. This strategy is aimed at providing value and innovation while maintaining quality for professional customers [34][36][38] Market Challenges and Future Outlook - **Labor Market Pressures**: Home Depot has converted COVID-related benefits into permanent wage enhancements. The company has successfully hired more staff in preparation for the 2021 season compared to the previous year [45][46] - **Housing Market Dynamics**: The company anticipates continued demand for home improvement driven by low housing inventory and the millennial generation's increasing engagement in home ownership and DIY projects. The long-term outlook for home improvement remains solid despite short-term uncertainties [51][63][66] Additional Considerations - **Globalization and Manufacturing**: Home Depot is diversifying its manufacturing sources beyond China, driven by rising costs and automation advancements. This shift may lead to more products being produced in North America [41][42][44] - **Service Business Growth**: The tool rental and equipment rental business is expected to grow as both DIY and professional customers seek flexible solutions for their projects [27][28] This summary encapsulates the key points discussed during the conference call, highlighting Home Depot's strategies, market position, and outlook in the home improvement industry.

Summary of The Home Depot, Inc. Conference Call Company Overview - **Company**: The Home Depot, Inc. (NYSE: HD) - **Date**: June 2, 2021 - **Participants**: Ted Decker (President & COO), Isabel Janci (VP of Investor Relations), Jeff Kinnaird (EVP of Merchandising) Key Industry Insights - **Market Performance**: May showed strong sales, although slightly slower than March and April, attributed to stimulus effects and lumber price inflation [3][5] - **Lumber Prices**: Prices for lumber, specifically OSB, increased from just under $40 to $47, indicating ongoing inflation in material costs [7] - **Labor Issues**: Labor shortages in home construction are impacting the ability to meet demand, although retail staffing is stable [7][9] Company Performance and Strategy - **Pro vs. Consumer Sales**: The Pro business has been growing faster than consumer sales, with a healthy balance of 55% consumer and 45% Pro [11][9] - **Project-Based Selling**: The company emphasizes selling projects rather than individual products, aiming to increase basket size through project-oriented shopping [12][13] - **Big-Ticket Transactions**: Transactions over $1,000 increased by approximately 50% in Q1, driven by project-based purchases rather than just high-ticket items [16] Housing Market Dynamics - **Millennial Engagement**: Millennials are increasingly participating in the housing market, similar to Baby Boomers, which is expected to drive demand for home improvement [23] - **Home Price Appreciation**: Home prices have been appreciating in double digits, influenced by low inventory levels (around two months of supply) [24] - **Supply Shortage**: The cumulative under-building of approximately five million housing units over the past 12-15 years is expected to sustain demand for home improvement [25] Risks and Cautions - **Market Overheating**: Potential warning signs include a slowdown in housing turnover and rising interest rates, which could impact consumer spending on home improvement [28][29] - **Comparison to Past Housing Boom**: Current market fundamentals are healthier than the 2005-2006 housing boom, with responsible lending practices and no speculative building [31] Technological and Operational Enhancements - **Supply Chain Improvements**: Investments in supply chain capabilities and forecasting systems have allowed the company to manage increased demand effectively [35][36] - **Customer Experience**: Enhancements in store experience and digital capabilities are aimed at improving customer engagement and product accessibility [36][37] ESG Initiatives - **Sustainability Efforts**: The company has committed significant resources to sustainability, including requiring certified wood fiber products and transitioning to LED lighting [39] - **Community Engagement**: Home Depot has invested in community projects and veteran causes, committing $500 million to support veterans [39] Conclusion - The Home Depot is well-positioned in a robust housing market with strong consumer engagement, although it faces challenges related to supply chain, labor, and potential market overheating. The company's focus on project-based sales and technological enhancements supports its growth strategy while maintaining a commitment to sustainability and community engagement.

The Home Depot, Inc. (NYSE:HD) Q1 2021 Earnings Conference Call May 18, 2021 9:00 AM ET Company Participants Isabel Janci - Vice President, Investor Relations Craig Menear - Chairman and CEO Ted Decker - President and COO Richard McPhail - Executive Vice President and CFO Mark Holifield - Executive Vice President, Supply Chain and Product Development Conference Call Participants Simeon Gutman - Morgan Stanley Michael Baker - D.A. Davidson Michael Lasser - UBS Chuck Grom - Gordon Haskett Scot Ciccarelli - RB ...