Home Depot(US:HD)2023-08-21 16:00Financial Performance - Net sales for Q2 2023 were $42.916 billion, a decrease of 2% compared to $43.792 billion in Q2 2022[9] - Gross profit for Q2 2023 was $14.157 billion, down from $14.483 billion in the same quarter last year, representing a decline of 2.2%[9] - Operating income for Q2 2023 was $6.589 billion, a decrease of 8.6% from $7.210 billion in Q2 2022[9] - Net earnings for Q2 2023 were $4.659 billion, down 9.9% from $5.173 billion in Q2 2022[9] - Basic earnings per share for Q2 2023 were $4.66, compared to $5.06 in Q2 2022, reflecting a decline of 7.9%[9] - Net earnings for the six months ended July 30, 2023, were $8,532 million, a decrease of 9.2% compared to $9,404 million for the same period in 2022[14] - Total net sales for the six months ended July 30, 2023, were $80,173 million, down 3.1% from $82,700 million for the same period in 2022[22] - Net sales for Q2 2023 were $42.9 billion, a decrease of 2.0% from $43.8 billion in Q2 2022[57] - Net earnings for Q2 2023 were $4.7 billion, or $4.65 per diluted share, compared to $5.2 billion, or $5.05 per diluted share in Q2 2022[55] - Net sales for the first six months of fiscal 2023 were $80.2 billion, a decrease of 3.1% from $82.7 billion in the same period of fiscal 2022[67] Assets and Liabilities - Total current assets as of July 30, 2023, were $31.830 billion, a slight decrease from $32.471 billion as of January 29, 2023[8] - Total liabilities increased to $75.052 billion as of July 30, 2023, compared to $74.883 billion on January 29, 2023[8] - Merchandise inventories decreased to $23.265 billion from $24.886 billion, indicating a reduction of 6.5%[8] - The company reported a total stockholders' equity of $1.335 billion as of July 30, 2023, down from $1.562 billion on January 29, 2023[8] - Net property and equipment amounted to $27.7 billion as of July 30, 2023, an increase from $26.6 billion as of January 29, 2023[28] - Total lease liabilities were $10,697 million as of July 30, 2023, compared to $10,456 million as of January 29, 2023[30] Cash Flow and Dividends - Cash dividends paid increased to $4,215 million for the six months ended July 30, 2023, compared to $3,910 million for the same period in 2022, reflecting a 7.8% increase[14] - Cash flow from operations for the first six months of fiscal 2023 was $12.2 billion, used for $5.0 billion in share repurchases and $4.2 billion in dividends[55] - Cash and cash equivalents were $2.814 billion as of July 30, 2023, up from $2.757 billion on January 29, 2023[8] - Cash dividends per share increased to $2.09 for the three months ended July 30, 2023, compared to $1.90 for the same period in 2022[38] - A 10% increase in the quarterly cash dividend was announced in February 2023, raising it from $1.90 to $2.09 per share, with $4.2 billion paid in cash dividends during the first six months of fiscal 2023[78] Share Repurchase and Capital Expenditures - The company repurchased $4,954 million of common stock during the six months ended July 30, 2023, compared to $3,962 million in the same period of 2022, reflecting a 25.0% increase[14] - The company approved a new $15.0 billion share repurchase authorization in August 2023, replacing the previous authorization[39] - Capital expenditures for the six months ended July 30, 2023, were $1,697 million, compared to $1,447 million for the same period in 2022, marking an increase of 17.3%[14] - The company plans to invest approximately $3 billion in capital expenditures for fiscal 2023, representing about 2% of net sales annually[78] Sales Performance - Comparable sales decreased by 2.0% in Q2 2023, while comparable customer transactions also fell by 2.0%[57] - Online sales accounted for 14.4% of net sales in Q2 2023, increasing by 1.2% compared to Q2 2022[61] - Total comparable sales decreased by 2.0% in Q2 2023, driven by a 2.0% decline in comparable customer transactions, slightly offset by a 0.1% increase in comparable average ticket[61] - Net sales in the U.S. for the three months ended July 30, 2023, were $39,191 million, a decrease of 2.1% from $40,044 million for the same period in 2022[22] - Net sales outside the U.S. for the three months ended July 30, 2023, were $3,725 million, a decrease of 0.6% from $3,748 million for the same period in 2022[22] Operational Metrics - The inventory turnover ratio was 4.4 times at the end of Q2 2023, compared to 4.5 times at the end of Q2 2022[55] - Total operating expenses for Q2 2023 were $7.6 billion, representing 17.6% of net sales, compared to $7.3 billion or 16.6% in Q2 2022[58] - SG&A expenses increased by 3.9% to $6.9 billion in Q2 2023, representing 16.1% of net sales[63] - The company reported a return on invested capital (ROIC) of 41.5% for the trailing twelve-month period, down from 45.6% in the previous year[55] - Gross profit margin for Q2 2023 was 33.0%, slightly down from 33.1% in Q2 2022[58] - Gross profit for Q2 2023 decreased by 2.3% to $14.2 billion, with a gross profit margin of 33.0%[62] Market Risks - There have been no material changes to the company's exposure to market risks, including interest rate fluctuations and foreign currency exchange rate risks[86]