ATLANTA, November 16, 2021 -- The Home Depot®, the world's largest home improvement retailer, today reported sales of $36.8 billion for the third quarter of fiscal 2021, an increase of $3.3 billion, or 9.8 percent from the third quarter of fiscal 2020. Comparable sales for the third quarter of fiscal 2021 increased 6.1 percent, and comparable sales in the U.S. increased 5.5 percent.
Net earnings for the third quarter of fiscal 2021 were $4.1 billion, or $3.92 per diluted share, compared with net earnings of $3.4 billion, or $3.18 per diluted share, in the same period of fiscal 2020. For the third quarter of fiscal 2021, diluted earnings per share increased 23.3 percent from the same period in the prior year.
“As evidenced by our strong performance in the quarter, our team continues to do an outstanding job of operating with flexibility and agility,” said Craig Menear, chairman and CEO. “Ultimately, this is what has allowed us to respond to the elevated home improvement demand that has persisted. I would like to extend my sincere appreciation to our team, as well as our supplier, supply chain, and transportation partners, as we continue to navigate this dynamic environment together.”
The Home Depot will conduct a conference call today at 9 a.m. ET to discuss information included in this news release and related matters. The conference call will be available in its entirety through a webcast and replay at ir.homedepot.com/events-and-presentations.
At the end of the third quarter, the Company operated a total of 2,317 retail stores in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico, including 14 stores from a small acquisition completed during the second quarter of fiscal 2021. The Company employs approximately 500,000 associates. The Home Depot's stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor's 500 index.
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Certain statements contained herein constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may relate to, among other things, the impact of the COVID-19 pandemic and the related recovery on our business, operations and financial results (which, among other things, may affect many of the items listed below); the demand for our products and services; net sales growth; comparable sales; effects of competition; our brand and reputation; implementation of store, interconnected retail, supply chain and technology initiatives; inventory and in-stock positions; state of the economy; state of the housing and home improvement markets; state of the credit markets, including mortgages, home equity loans and consumer credit; impact of tariffs; issues related to the payment methods we accept; demand for credit offerings; management of relationships with our associates, potential associates, suppliers and service providers; international trade disputes, natural disasters, public health issues (including pandemics and quarantines, related shut-downs and other governmental orders, and similar restrictions, as well as subsequent re-openings), and other business interruptions that could disrupt supply or delivery of, or demand
for, the Company’s products or services; continuation or suspension of share repurchases; net earnings performance; earnings per share; dividend targets; capital allocation and expenditures; liquidity; return on invested capital; expense leverage; stock-based compensation expense; commodity or other price inflation and deflation; the ability to issue debt on terms and at rates acceptable to us; the impact and expected outcome of investigations, inquiries, claims and litigation, including compliance with related settlements; the effect of accounting charges; the effect of adopting certain accounting standards; the impact of regulatory changes, including changes to tax laws and regulations; store openings and closures; guidance for fiscal 2021 and beyond; financial outlook; and the impact of acquired companies, including HD Supply Holdings, Inc., on our organization and the ability to recognize the anticipated benefits of those acquisitions. Forward-looking statements are based on currently available information and our current assumptions, expectations and projections about future events. You should not rely on our forward-looking statements. These statements are not guarantees of future performance and are subject to future events, risks and uncertainties – many of which are beyond our control, dependent on the actions of third parties, or are currently unknown to us – as well as potentially inaccurate assumptions that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include, but are not limited to, those described in Item 1A, “Risk Factors,” and elsewhere in our Annual Report on Form 10-K for our fiscal year ended January 31, 2021 and in our subsequent Quarterly Reports on Form 10-Q. There also may be other factors we cannot anticipate that are not described herein, generally because we do not currently perceive them to be material. Such factors could cause results to differ materially from our expectations.
Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our periodic filings with the Securities and Exchange Commission and in our other public statements.
For more information, contact:
Financial Community
News Media
Isabel Janci
Margaret Smith
Vice President of Investor Relations and Treasurer
Senior Manager of Corporate Communications
770-384-2666
470-564-0284
isabel_janci@homedepot.com
margaret_w_smith@homedepot.com
THE HOME DEPOT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Three Months Ended
Nine Months Ended
in millions, except per share data
October 31, 2021
November 1, 2020
% Change
October 31, 2021
November 1, 2020
% Change
Net sales
$
36,820
$
33,536
9.8
%
$
115,438
$
99,849
15.6
%
Cost of sales
24,257
22,080
9.9
76,468
65,827
16.2
Gross profit
12,563
11,456
9.7
38,970
34,022
14.5
Operating expenses:
Selling, general and administrative
6,168
6,076
1.5
18,975
18,260
3.9
Depreciation and amortization
600
528
13.6
1,780
1,567
13.6
Total operating expenses
6,768
6,604
2.5
20,755
19,827
4.7
Operating income
5,795
4,852
19.4
18,215
14,195
28.3
Interest and other (income) expense:
Interest and investment income
(15)
(11)
36.4
(26)
(37)
(29.7)
Interest expense
341
340
0.3
1,006
1,010
(0.4)
Interest and other, net
326
329
(0.9)
980
973
0.7
Earnings before provision for income taxes
5,469
4,523
20.9
17,235
13,222
30.4
Provision for income taxes
1,340
1,091
22.8
4,154
3,213
29.3
Net earnings
$
4,129
$
3,432
20.3
%
$
13,081
$
10,009
30.7
%
Basic weighted average common shares
1,049
1,073
(2.2)
%
1,059
1,074
(1.4)
%
Basic earnings per share
$
3.94
$
3.20
23.1
$
12.35
$
9.32
32.5
Diluted weighted average common shares
1,053
1,078
(2.3)
%
1,063
1,078
(1.4)
%
Diluted earnings per share
$
3.92
$
3.18
23.3
$
12.31
$
9.28
32.7
Three Months Ended
Nine Months Ended
Selected Sales Data (1)
October 31, 2021
November 1, 2020
% Change
October 31, 2021
November 1, 2020
% Change
Customer transactions (in millions)
428.2
453.2
(5.5)
%
1,357.2
1,339.5
1.3
%
Average ticket
$
82.38
$
72.98
12.9
$
82.43
$
73.90
11.5
Sales per retail square foot
$
587.28
$
552.85
6.2
$
615.98
$
549.26
12.1
—————
(1)Selected Sales Data does not include results for the legacy Interline Brands business or results for HD Supply Holdings, Inc.
THE HOME DEPOT, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
in millions
October 31, 2021
November 1, 2020
January 31, 2021
Assets
Current assets:
Cash and cash equivalents
$
5,067
$
14,652
$
7,895
Receivables, net
3,533
2,666
2,992
Merchandise inventories
20,582
16,155
16,627
Other current assets
1,284
1,032
963
Total current assets
30,466
34,505
28,477
Net property and equipment
24,935
23,848
24,705
Operating lease right-of-use assets
5,903
5,433
5,962
Goodwill
7,445
2,236
7,126
Other assets
4,282
897
4,311
Total assets
$
73,031
$
66,919
$
70,581
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
13,375
$
12,899
$
11,606
Accrued salaries and related expenses
2,028
2,176
2,463
Current installments of long-term debt
2,436
2,491
1,416
Current operating lease liabilities
827
842
828
Other current liabilities
8,237
6,987
6,853
Total current liabilities
26,903
25,395
23,166
Long-term debt, excluding current installments
36,712
32,831
35,822
Long-term operating lease liabilities
5,290
4,880
5,356
Other long-term liabilities
3,091
2,278
2,938
Total liabilities
71,996
65,384
67,282
Total stockholders’ equity
1,035
1,535
3,299
Total liabilities and stockholders’ equity
$
73,031
$
66,919
$
70,581
THE HOME DEPOT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
in millions
October 31, 2021
November 1, 2020
Cash Flows from Operating Activities:
Net earnings
$
13,081
$
10,009
Reconciliation of net earnings to net cash provided by operating activities:
Depreciation and amortization
2,128
1,853
Stock-based compensation expense
312
234
Changes in working capital
(2,199)
5,348
Changes in deferred income taxes
(73)
(86)
Other operating activities
137
57
Net cash provided by operating activities
13,386
17,415
Cash Flows from Investing Activities:
Capital expenditures
(1,737)
(1,503)
Payments for businesses acquired, net
(416)
—
Other investing activities
21
52
Net cash used in investing activities
(2,132)
(1,451)
Cash Flows from Financing Activities:
Repayments of short-term debt, net
—
(974)
Proceeds from long-term debt, net of discounts and premiums
2,979
4,960
Repayments of long-term debt
(1,480)
(1,836)
Repurchases of common stock
(10,374)
(791)
Proceeds from sales of common stock
190
185
Cash dividends
(5,264)
(4,837)
Other financing activities
(160)
(132)
Net cash used in financing activities
(14,109)
(3,425)
Change in cash and cash equivalents
(2,855)
12,539
Effect of exchange rate changes on cash and cash equivalents
