The Home Depot, Inc. (NYSE:HD) JPMorgan Virtual Retail Round-Up April 15, 2021 1:10 PM ET Company Participants Richard McPhail - EVP & CFO Conference Call Participants Chris Horvers - JPMorgan Chase & Co. Chris Horvers Good afternoon, everybody. My name is Chris Horvers, I'm the broadlines and hardlines retail analyst here at JPMorgan, and it's my great pleasure to have with us Richard McPhail, The Home Depot's Chief Financial Officer. Richard, thank you for participating in today's conference. In terms of ...

Summary of The Home Depot, Inc. Conference Call Company Overview - **Company**: The Home Depot, Inc. (NYSE: HD) - **Event**: Raymond James Associates 42nd Annual Institutional Investors Conference - **Date**: March 2, 2021 Key Points Industry Performance - The Home Depot experienced a strong fiscal year in 2020, with the fourth quarter being the strongest, contributing to a total business growth of over $21 billion, reflecting a consistent 25% comparable sales growth over the past three quarters [8][9] - The company reported a mix of 10% ticket growth and 13% transaction growth throughout the year [8] Customer Engagement - Consumer engagement remained strong, with professional customers recovering from initial pandemic impacts, leading to robust order books [9] - The company noted that 55% of sales are DIY-oriented, while 45% come from professional customers [16] Competitive Environment - The pandemic has altered the competitive landscape, with increased customer expectations for an interconnected shopping experience [11] - The Home Depot has focused on enhancing digital engagement, which has seen significant traffic growth, allowing the company to capitalize on increased online shopping [13] Acquisition of HD Supply - The acquisition of HD Supply is viewed positively, as it strengthens Home Depot's position in the $55 billion MRO (Maintenance, Repair, and Operations) market [18][19] - The integration aims to leverage the strengths of both businesses to enhance service capabilities in multi-family housing and other sectors [21] Market Demand and Trends - The MRO market is characterized by three phases of demand: maintenance and repair, turnover, and refurbishment, with expectations for recovery as normal turnover resumes post-pandemic [25][26] - The company anticipates continued demand in both multi-family and single-family housing markets [26] Inflation Impact - Significant inflation has been observed in lumber and copper, with lumber prices reaching over $1,000 per thousand board feet, impacting sales by approximately $1.7 billion in 2020 [28] - The company manages commodity price fluctuations on a weekly basis and employs a comprehensive approach to manage costs across its product portfolio [29][30] Engagement with Younger Consumers - The Home Depot has seen increased engagement from millennials, who are forming households and participating in DIY projects [32][33] - The company has invested in capabilities to cater to this demographic, enhancing digital engagement and delivery options [34][35] Strategic Investments - The company has ramped up investments in supply chain and digital capabilities, with plans to build approximately 150 new supply chain facilities to improve productivity and delivery [46] - The digital platform has been completely re-platformed to handle increased traffic, making Home Depot the fifth largest e-commerce site in the U.S. [48] Future Outlook - The company is preparing for the spring selling season with lessons learned from the pandemic, including inventory readiness and promotional strategies [50] - A margin target of 14% for 2021 has been set, with expectations of maintaining profitability despite uncertainties [51][54] Conclusion - The Home Depot is positioned for continued growth through strategic investments, enhanced customer engagement, and a strong recovery in both consumer and professional markets, while navigating challenges such as inflation and supply chain dynamics [54][55]

The Home Depot, Inc. (NYSE:HD) Q4 2020 Earnings Conference Call February 23, 2021 9:00 AM ET Company Participants Isabel Janci - Vice President, Investor Relations Craig Menear - Chairman, Chief Executive Officer Ted Decker - President, Chief Operating Officer Richard McPhail - Executive Vice President, Chief Financial Officer Conference Call Participants Simeon Gutman - Morgan Stanley Scot Ciccarelli - RBC Michael Baker - D.A. Davidson Christopher Horvers - JPMorgan Steven Forbes - Guggenheim Zach Fadem - ...

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The Home Depot Inc. (NYSE:HD) Q3 2020 Earnings Conference Call November 17, 2020 9:00 AM ET Company Participants Craig Menear - Chairman, Chief Executive Officer Ted Decker - President, Chief Operating Officer Richard McPhail - Executive Vice President, Chief Financial Officer Mark Holifield - Executive Vice President, Supply Chain and Product Development Isabel Janci - Vice President, Investor Relations Conference Call Participants Christopher Horvers - JP Morgan Scot Ciccarelli - RBC Capital Markets Mich ...

Summary of The Home Depot, Inc. Conference Call Company Overview - **Company**: The Home Depot, Inc. (NYSE: HD) - **Event**: Goldman Sachs 27th Annual Global Retailing Virtual Conference - **Date**: September 10, 2020 Key Points Financial Performance - Home Depot reported a **23% increase in comparable sales** for the second quarter, translating to over **$7 billion in sales growth** [2][4] - All regions experienced **double-digit comps**, with 13 out of 14 merchandise departments also posting double-digit growth [2][11] - The company noted that **DIY customers** have been driving growth, with a significant shift in engagement during the pandemic [8][9] Supply Chain and Operational Challenges - The surge in demand due to COVID-19 created complexities in the supply chain, impacting inventory levels and in-stock positions [5][64] - Home Depot adapted by converting a fulfillment center in Chicago to handle direct fulfillment, supporting **triple-digit growth** in online sales [7][6] - The company is working to improve in-stock rates, which are currently down year-over-year across most categories [5][64] Customer Engagement and Market Trends - The company maintains a **55% DIY and 45% Pro customer mix**, emphasizing the importance of both segments [9][10] - Increased engagement from DIY customers is seen as a long-term opportunity, with a focus on maintaining this engagement through digital tools and personalized marketing [12][16] - Home Depot is leveraging digital capabilities to better understand and serve its customers, particularly in the DIY segment [12][13] Innovation and Product Development - Home Depot is focused on innovation that simplifies projects for consumers and enhances efficiency for Pro customers [18][19] - Notable innovations include advancements in **cordless battery technology** for power tools and improvements in tile setting materials [19][20] - The company is committed to product authority and is working closely with suppliers to drive innovation across all categories [19][20] Market Dynamics and Competitive Landscape - Home Depot is well-positioned with its store footprint, anticipating continued migration trends from urban to suburban areas [22][24] - The company acknowledges the competitive landscape, particularly with independent retailers, and is investing in interconnected experiences to gain market share [28][27] - Home Depot aims to grow faster than the market by focusing on customer needs and enhancing the Pro customer experience [70][27] Pricing and Promotions Strategy - The company follows an **everyday low price** strategy, with promotional events designed to create excitement rather than relying solely on discounts [30][32] - Home Depot is adapting its promotional strategies to ensure safety and social distancing, expanding the timeframe for events rather than concentrating them on single days [34][35] Future Outlook and Investments - Home Depot plans to continue its multi-year investment strategy without pulling back, even in the face of potential tax increases [51][52] - The company expects to see modest store expansion, primarily in response to market opportunities [56] - Operational costs related to COVID-19 are anticipated to decrease as the situation stabilizes, particularly in areas like cleaning and safety measures [41][43] Conclusion - Home Depot is navigating the challenges posed by the pandemic with a focus on customer engagement, supply chain improvements, and innovation. The company is well-positioned to capitalize on the growing DIY market while maintaining its commitment to Pro customers. The strategic investments and adaptations made during this period are expected to support long-term growth and market share expansion.

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].