Home Depot(US:HD)2024-05-20 22:05Financial Performance - Net sales for Q1 2024 were $36,418 million, a decrease of 2.3% compared to $37,257 million in Q1 2023[9] - Gross profit for Q1 2024 was $12,433 million, down from $12,557 million in the same period last year[9] - Operating income decreased to $5,079 million in Q1 2024 from $5,551 million in Q1 2023, reflecting a decline of 8.5%[9] - Net earnings for Q1 2024 were $3,600 million, a decrease of 7.0% compared to $3,873 million in Q1 2023[9] - Basic earnings per share for Q1 2024 were $3.64, down from $3.83 in Q1 2023[9] - Comparable sales decreased by 2.8% in Q1 2024, driven by a 1.5% decline in comparable customer transactions and a 1.3% decrease in comparable average ticket[63] - Net earnings for the three months ended April 28, 2024, were $3,600 million, a decrease of 7.0% compared to $3,873 million for the same period in 2023[14] - Net earnings decreased to $14.87 billion for the twelve months ended April 28, 2024, compared to $16.75 billion for the same period last year[71] Assets and Liabilities - Total current assets increased to $32,622 million as of April 28, 2024, compared to $29,775 million as of January 28, 2024[8] - Total assets rose to $79,230 million as of April 28, 2024, up from $76,530 million as of January 28, 2024[8] - Total liabilities increased to $77,410 million as of April 28, 2024, compared to $75,486 million as of January 28, 2024[8] - The company reported a decrease in merchandise inventories to $22,416 million as of April 28, 2024, from $20,976 million as of January 28, 2024[8] - Cash and cash equivalents at the end of the period increased to $4,264 million, compared to $1,260 million at the end of the same period last year[14] - Net property and equipment increased to $27.7 billion as of April 28, 2024, from $27.1 billion as of January 28, 2024[27] - Total lease assets decreased slightly to $10.69 billion as of April 28, 2024, compared to $10.72 billion as of January 28, 2024[29] Cash Flow and Capital Expenditures - Cash flow from operations was $5.5 billion in Q1 2024, used to fund $2.2 billion in dividends and repay $1.2 billion of long-term debt[56] - Capital expenditures for the quarter were $847 million, a decrease from $905 million in the prior year[14] - The company plans to invest approximately $3.0 billion to $3.5 billion in capital expenditures for fiscal 2024, focusing on new stores and technology improvements[72] Shareholder Returns - The company repurchased $649 million of common stock during the quarter, significantly lower than $2,887 million in the same period last year[14] - A quarterly cash dividend of $2.25 per share was announced, reflecting a 7.7% increase from the previous dividend of $2.09[73] - As of April 28, 2024, approximately $11.7 billion of the $15.0 billion share repurchase authorization remained available[73] Acquisition Plans - The company is focused on future growth through interconnected retail and technology initiatives, as well as potential acquisitions[5] - The pending acquisition of SRS Distribution Inc. is expected to cost $18.25 billion, subject to customary adjustments, and is anticipated to close by the end of fiscal 2024[49] - The commercial paper program was increased from $5.0 billion to $19.5 billion in May 2024 to finance the pending acquisition of SRS Distribution Inc.[33] Operational Highlights - The company opened two new stores in the U.S., bringing the total store count to 2,337, with 320 stores located in Canada and Mexico[56] - Online sales accounted for 15.3% of net sales in Q1 2024, increasing by 3.3% compared to Q1 2023[63] - Operating expenses increased to $7.354 billion in Q1 2024, representing 20.2% of net sales, compared to 18.8% in Q1 2023[60] - The gross profit margin improved to 34.1% in Q1 2024, up from 33.7% in Q1 2023, primarily due to lower transportation costs[64] Debt and Financing - The company had $8 million of outstanding borrowings under its commercial paper program as of April 28, 2024, with a maximum amount outstanding at any time of $117 million during the first three months of fiscal 2024[31] - The company expects to issue senior notes as part of the planned funding for the pending SRS acquisition[74] - The company’s outstanding payment obligations under the supplier finance program were $404 million as of April 28, 2024, down from $514 million at January 28, 2024[18]