Home Depot(US:HD)2023-05-22 16:00Financial Performance - Net sales for Q1 2023 were $37,257 million, a decrease of 4.2% compared to $38,908 million in Q1 2022[10] - Gross profit for Q1 2023 was $12,557 million, down from $13,145 million in the same period last year, reflecting a gross margin of 33.7%[10] - Operating income decreased to $5,551 million in Q1 2023, compared to $5,929 million in Q1 2022, indicating a decline of 6.4%[10] - Net earnings for Q1 2023 were $3,873 million, a decrease of 8.5% from $4,231 million in Q1 2022[10] - Basic earnings per share for Q1 2023 were $3.83, down from $4.11 in Q1 2022, representing a decline of 6.8%[10] - Comparable sales decreased by 4.5%, with a 5.0% decline in comparable customer transactions, partially offset by a 0.2% increase in comparable average ticket[65] - Gross profit decreased by 4.5% to $12.6 billion, with a gross profit margin of 33.7% compared to 33.8% in Q1 2022[66] - Operating income for Q1 2023 was $5.6 billion, representing 14.9% of net sales, down from 15.2% in Q1 2022[62] - Net earnings for the three months ended April 30, 2023, were $3,873 million, a decrease of 8.5% compared to $4,231 million for the same period in 2022[17] Assets and Liabilities - Total current assets as of April 30, 2023, were $32,423 million, slightly down from $32,471 million at the end of January 29, 2023[9] - Total liabilities increased to $76,024 million as of April 30, 2023, compared to $74,883 million at the end of January 29, 2023[9] - Cash and cash equivalents decreased significantly to $1,260 million from $2,757 million at the end of January 29, 2023[9] - Merchandise inventories rose to $25,371 million as of April 30, 2023, compared to $24,886 million at the end of January 29, 2023, indicating a 2.0% increase[9] - The company reported a total stockholders' equity of $362 million as of April 30, 2023, down from $1,562 million at the end of January 29, 2023[9] - Total stockholders' equity increased to $362 million at the end of the period, compared to a deficit of $1,709 million a year earlier[15] Cash Flow and Investments - Net cash provided by operating activities was $5,614 million, up 48.3% from $3,789 million in the prior year[17] - Capital expenditures for the three months ended April 30, 2023, were $905 million, compared to $704 million in the same period last year[17] - Cash flow from operations was $5.6 billion, funding $2.9 billion in share repurchases and $2.1 billion in dividends[59] - Cash used in investing activities rose by $202 million in Q1 2023 compared to Q1 2022, mainly due to increased capital expenditures[78] Shareholder Returns - The company repurchased $3,028 million of common stock during the period, compared to $2,250 million in the same period last year[15] - Cash dividends paid were $2,118 million, an increase from $1,962 million in the prior year[17] - The company announced a 10% increase in its quarterly cash dividend from $1.90 to $2.09 per share, resulting in $2.1 billion paid in cash dividends during the first three months of fiscal 2023[75] - Cash dividends per share increased to $2.09 from $1.90 year-over-year[39] - The total number of shares repurchased in the three months ended April 30, 2023, was 10 million, costing $3,028 million[43] - The company has a $15.0 billion share repurchase authorization, with approximately $9.5 billion remaining as of April 30, 2023, and $2.9 billion spent on share repurchases in Q1 2023[75] Operational Metrics - The inventory turnover ratio was 3.9 times, down from 4.4 times in Q1 2022, due to lower sales and higher average inventory levels[59] - The return on invested capital (ROIC) was 43.6% for the trailing twelve months, down from 45.3% in the previous year[72] - Online sales represented 14.5% of net sales, decreasing by 2.9% compared to Q1 2022[65] - The company opened two new stores in Mexico, bringing the total store count to 2,324, with 317 stores (13.6%) located in Canada and Mexico[59] Debt and Financing - The company has a commercial paper program allowing borrowings up to $5.0 billion, with a maximum outstanding amount of $1.5 billion during the first three months of fiscal 2023[34] - The company repaid $1.0 billion of 2.70% senior notes at maturity in April 2023[35] - The company had no outstanding borrowings under its commercial paper program as of April 30, 2023, and was in compliance with all covenants[76] - The maximum amount outstanding under the commercial paper program was $1.5 billion during the first three months of fiscal 2023[76] - The company repaid $1.0 billion of senior notes at maturity in April 2023, with no new issuances during Q1 2023[76] Currency and Adjustments - The company reported a foreign currency translation adjustment of $79 million for the period, compared to $20 million in the prior year[15] - The fair value of derivative agreements – liabilities decreased to $740 million from $778 million as of January 29, 2023[46]