Home Depot(US:HD)2025-11-24 22:52Financial Performance - Net sales for the three months ended November 2, 2025, were $41,352 million, an increase of 2.8% compared to $40,217 million for the same period in 2024[20] - Gross profit for the nine months ended November 2, 2025, was $42,399 million, up from $40,274 million, reflecting a growth of 5.3%[20] - Operating income for the three months ended November 2, 2025, was $5,353 million, slightly down from $5,418 million in the prior year, indicating a decrease of 1.2%[20] - Net earnings for the nine months ended November 2, 2025, were $11,585 million, compared to $11,809 million for the same period in 2024, a decline of 1.9%[20] - Total net sales for the nine months ended November 2, 2025, reached $126,485 million, up from $119,810 million for the same period in 2024, indicating a year-over-year growth[45] - Net sales for Q3 2025 were $41.4 billion, a 2.8% increase from $40.2 billion in Q3 2024, driven by GMS acquisition contributing $892 million[99][113] - Net earnings for Q3 2025 were $3.6 billion, or $3.62 per diluted share, compared to $3.65 billion, or $3.67 per diluted share in Q3 2024[99][124] - Gross profit for Q3 2025 was $13.8 billion, maintaining a gross profit margin of 33.4%[118] - Gross profit for the first nine months of fiscal 2025 rose 5.3% to $42.4 billion, with a gross profit margin of 33.5%[134] Assets and Liabilities - Total assets increased to $106,274 million as of November 2, 2025, from $96,119 million as of February 2, 2025, representing a growth of 10.9%[17] - Current liabilities rose to $34,367 million as of November 2, 2025, compared to $28,661 million as of February 2, 2025, an increase of 20.0%[17] - Total receivables, net, increased to $6,765 million as of November 2, 2025, compared to $4,903 million as of February 2, 2025, reflecting a significant growth in customer receivables[31] - Net property and equipment increased to $31.3 billion as of November 2, 2025, from $29.1 billion as of February 2, 2025[50] - Total lease liabilities amounted to $12.406 billion as of November 2, 2025, compared to $11.928 billion as of February 2, 2025[51] - Goodwill increased to $22.267 billion as of November 2, 2025, from $19.475 billion as of February 2, 2025, primarily due to acquisitions[53] Cash Flow and Investments - The company reported a cash flow from operating activities of $12,978 million for the nine months ended November 2, 2025, down from $15,139 million in the prior year, a decrease of 14.3%[28] - Capital expenditures for the nine months ended November 2, 2025, were $2,621 million, compared to $2,384 million in the same period last year, an increase of 9.9%[28] - Cash collateral related to derivative instruments was $444 million and $668 million as of November 2, 2025, and February 2, 2025, respectively[72] - Net cash provided by operating activities decreased by $2.2 billion in the first nine months of fiscal 2025 compared to the same period in fiscal 2024, primarily due to changes in working capital[160] - Net cash used in investing activities decreased by $12.1 billion in the first nine months of fiscal 2025 compared to the same period in fiscal 2024, mainly due to higher cash paid for acquisitions in fiscal 2024[161] - Net cash used in financing activities in the first nine months of fiscal 2025 included $6.9 billion in cash dividends paid and $3.4 billion in repayments of long-term debt[162] Shareholder Returns - The company approved a $15.0 billion share repurchase authorization in August 2023, with approximately $11.7 billion remaining available as of November 2, 2025[74] - The company recorded cash dividends per share of $2.30 for the three months ended November 2, 2025, and $6.90 for the nine months ended November 2, 2025[73] - Approximately $11.7 billion of the $15.0 billion share repurchase authorization remained available as of November 2, 2025[151] - The company paused share repurchases in March 2024 and has not resumed share repurchase activity as of November 2, 2025, with $11.66 billion remaining under the share repurchase program[175] Acquisitions and Business Expansion - The company completed the acquisition of GMS on September 4, 2025, expanding its product offerings in the interior and construction products segment[40] - The company completed the GMS acquisition for approximately $5.5 billion, enhancing its position in the building materials distribution market[103] - Net sales attributable to GMS since the acquisition totaled $892 million for the three and nine months ended November 2, 2025[93] - The preliminary purchase price allocation for GMS included $2.6 billion in goodwill and $1.8 billion in intangible assets[88] Tax and Regulatory Matters - The effective tax rate for fiscal 2025 is not expected to be materially impacted by the One Big Beautiful Bill Act, which allows for 100% expensing of qualified property[33] - The effective income tax rate for Q3 2025 was 24.3%, slightly down from 24.4% in Q3 2024[123] - The effective income tax rate increased to 24.3% for the first nine months of fiscal 2025, compared to 23.9% in the same period of fiscal 2024[139] Operational Metrics - The company’s selling, general and administrative expenses for the three months ended November 2, 2025, were $7,134 million, compared to $6,846 million in the same period last year[42] - The company’s depreciation and amortization expenses for the nine months ended November 2, 2025, totaled $2,090 million, slightly up from $2,073 million in the prior year[42] - Operating expenses increased to $8.5 billion in Q3 2025, representing 20.5% of net sales, up from 19.9% in Q3 2024[109][120] - SG&A expenses increased by $1.9 billion, or 9.1%, to $22.9 billion, representing 18.1% of net sales[136] Market and Risk Factors - There were no material changes to market risks from those disclosed in the 2024 Form 10-K, including exposure to interest rate fluctuations and foreign currency exchange rate fluctuations[166] - There were no material changes in risk factors discussed in the 2024 Form 10-K during the first nine months of fiscal 2025[173] - The company is undergoing a business transformation initiative, which includes upgrading and migrating accounting and finance systems over the next few years[168] Sales Performance - For the three months ended November 2, 2025, net sales for the Primary segment were $37,462 million, an increase of 0.5% compared to $37,289 million for the same period in 2024[42] - The company reported a net sales increase in building materials to $13,596 million for the three months ended November 2, 2025, compared to $13,531 million for the same period in 2024[45] - Net sales in the U.S. for the three months ended November 2, 2025, were $38.126 billion, up from $37.135 billion in the prior year, representing a 2.7% increase[46] - Comparable sales increased by 0.2% in Q3 2025, with a 1.8% rise in comparable average ticket, offset by a 1.6% decrease in comparable customer transactions[110][116] - Online sales accounted for 15.2% of net sales in Q3 2025, increasing by 11.4% compared to Q3 2024[114] - Online sales accounted for 15.4% of net sales during the first nine months of fiscal 2025, increasing by 10.8% compared to the same period in fiscal 2024[131] - Comparable sales increased by 0.3%, with a 1.1% rise in comparable average ticket, offset by a 0.8% decrease in comparable customer transactions[132]