Home Depot(US:HD)2022-03-22 16:00Financial Performance - The Home Depot reported net sales of $151,157 million for fiscal 2021, an increase of 14.4% compared to $132,110 million in fiscal 2020[115]. - Gross profit for fiscal 2021 was $50,832 million, representing a gross margin of approximately 33.6%[115]. - Net earnings for fiscal 2021 reached $16,433 million, a 27.5% increase from $12,866 million in fiscal 2020[115]. - The company’s operating income for fiscal 2021 was $23,040 million, reflecting a 26.8% increase from $18,278 million in fiscal 2020[115]. - Basic earnings per share for fiscal 2021 were $15.59, up from $11.98 in fiscal 2020, marking a 30.5% increase[115]. - Comprehensive income for fiscal 2021 was $16,400 million, compared to $12,934 million in fiscal 2020, reflecting a growth of 26.5%[117]. - Cash flows from operating activities totaled $16,571 million in fiscal 2021, down from $18,839 million in fiscal 2020[126]. - The company reported net sales from products amounted to $145,745 million in fiscal 2021, up from $127,671 million in fiscal 2020, indicating a growth of 14.2%[167]. - Net sales from services increased to $5,412 million in fiscal 2021, compared to $4,439 million in fiscal 2020, reflecting a growth of 21.9%[167]. Shareholder Returns - The company returned approximately $22 billion to shareholders in fiscal 2021, including $7.0 billion in cash dividends and $15.0 billion in share repurchases[13]. - The total number of shares repurchased in fiscal 2021 was 45 million, costing $15,001 million, compared to 3 million shares for $597 million in fiscal 2020[212]. - Cash dividends per share increased to $6.60 in fiscal 2021 from $6.00 in fiscal 2020[210]. - As of January 30, 2022, approximately $9.6 billion of the $20.0 billion share repurchase authorization remained available[211]. Capital Expenditures and Investments - In fiscal 2021, The Home Depot invested $2.6 billion in capital expenditures to enhance the interconnected customer experience[13]. - Capital expenditures for fiscal 2021 were $2,566 million, slightly up from $2,463 million in fiscal 2020[125]. - The company plans to continue expanding its market presence and investing in new technologies to enhance customer experience[1]. Store Operations and Customer Experience - The Home Depot operated 2,317 stores across the U.S., Canada, and Mexico as of the end of fiscal 2021[10]. - The Home Depot's stores typically stock approximately 30,000 to 40,000 items, with a significant online product assortment available[16]. - The company aims to provide the best customer experience in home improvement and extend its position as the low-cost provider[12]. - The Home Depot's strategic investments focus on creating a frictionless shopping experience that blends digital and physical retail[12]. - Approximately 55% of U.S. online orders were fulfilled through stores by the end of fiscal 2021, showcasing the effectiveness of the interconnected retail programs[23]. - The company has implemented curbside pickup and self-service lockers to improve customer convenience during the pandemic[23]. Supply Chain and Sourcing - In fiscal 2021, the company continued to invest in supply chain enhancements to achieve faster and more reliable delivery capabilities, aiming to reach 90% of the U.S. population with same or next day delivery[23]. - The Home Depot maintains sourcing offices in multiple countries, including Mexico, Canada, China, India, Vietnam, and Europe, to ensure high-quality product sourcing[17]. - The Home Depot's supply chain includes various distribution center platforms tailored to meet product and delivery needs, enhancing operational efficiency[23]. - The Home Depot's responsible sourcing program ensures compliance with social and environmental standards across its supply chain[17]. Workforce and Corporate Responsibility - The Home Depot employed approximately 490,600 associates at the end of fiscal 2021, with 89.1% located in the United States[27]. - The U.S. workforce is composed of 48% minorities and 52% whites, with 38% female and 62% male representation[30]. - The company focuses on associate engagement and development, providing robust training and support to enhance customer service[27]. - The company is committed to exercising corporate responsibility while delivering value to shareholders and other stakeholders[12]. Environmental Initiatives - The company aims to achieve a 40% reduction in Scope 1 and 2 carbon emissions by the end of fiscal 2030 and a 50% reduction by the end of fiscal 2035[31]. - The company plans to produce or procure 335 megawatts of renewable or alternative energy annually by the end of fiscal 2025[31]. - The company has set a goal to have 100% renewable electricity for all facilities worldwide by the end of fiscal 2030[31]. - The company received a score of "A-" from CDP in December 2021, reflecting leadership in climate change mitigation[32]. - The company has committed to eliminating certain chemicals from cleaning products by the end of fiscal 2022[31]. Acquisitions - The acquisition of HD Supply was completed on December 24, 2020, for a total cash consideration of $8.637 billion, with additional stock-based awards valued at $55 million[231]. - The total purchase consideration for the HD Supply acquisition amounted to $8.692 billion[232]. - The fair value of total assets acquired from HD Supply was recorded at $10.599 billion, with goodwill amounting to $4.872 billion[233]. - Identifiable intangible assets from the HD Supply acquisition were valued at $3.3 billion, including customer relationships and trade names[235]. - The goodwill from the HD Supply acquisition is primarily due to operational synergies and growth strategy acceleration, and is not expected to be tax-deductible[235].