Home Depot's 10-Q filing for the second quarter of fiscal 2024 revealed a net sales figure of $43.2 billion, marking a 0.6% increase from the same period in fiscal 2023. The company reported net earnings of $4.6 billion, or $4.60 per diluted share, for the quarter. Over the first six months of fiscal 2024, net sales amounted to $79.6 billion, with net earnings totaling $8.2 billion, or $8.23 per diluted share.
During the second quarter of fiscal 2024, Home Depot opened two new stores in the U.S. and one in Mexico, bringing the total store count to 2,340 as of July 28, 2024. Sales per retail square foot were reported at $660.17 for the quarter and $616.17 for the first six months of fiscal 2024. The inventory turnover ratio increased to 4.9 times at the end of the second quarter of fiscal 2024, up from 4.4 times in the same quarter of fiscal 2023, primarily due to lower average inventory levels.
The company generated $10.9 billion in cash flow from operations during the first six months of fiscal 2024 and received approximately $10.0 billion from the issuance of long-term debt, net of discounts. Home Depot also received $2.5 billion in proceeds from commercial paper borrowings, net of repayments, and utilized these funds, along with cash on hand, to fund the acquisition of SRS for $17.7 billion. Additionally, the company paid $4.5 billion in cash dividends, funded $1.6 billion in capital expenditures, repaid $1.3 billion of long-term debt, and funded $649 million of share repurchases.
The return on invested capital (ROIC) for the trailing twelve-month period was 31.9% at the end of the second quarter of fiscal 2024, a decrease from 41.5% at the end of the second quarter of fiscal 2023. This decline was mainly attributed to higher average long-term debt levels due to the financing of the SRS acquisition and lower operating income.
The acquisition of SRS, completed on June 18, 2024, is expected to accelerate Home Depot's growth with the residential professional customer and establish the company as a leading specialty trade distributor across multiple verticals.
In terms of sales, net sales for the second quarter of fiscal 2024 increased by 0.6% from the same period in fiscal 2023, driven by the SRS acquisition, acquisitions completed in fiscal 2023, and new store openings. However, total comparable sales for the second quarter of fiscal 2024 decreased by 3.3%, reflecting a 2.2% decrease in comparable customer transactions and a 1.3% decrease in comparable average ticket compared to the second quarter of fiscal 2023.
Gross profit for the second quarter of fiscal 2024 increased by 1.8% to $14.4 billion from the same period in fiscal 2023, with a gross profit margin of 33.4%. Operating expenses, including selling, general and administrative expenses, and depreciation and amortization, increased for the quarter, primarily due to a negative comparable sales environment.
For the first six months of fiscal 2024, net sales decreased by 0.7% compared to the same period in fiscal 2023, primarily driven by a negative comparable sales environment. Total comparable sales for the first six months of fiscal 2024 decreased by 3.1%, reflecting a 1.9% decrease in comparable customer transactions and a 1.3% decrease in comparable average ticket compared to the first six months of fiscal 2023.
The company reported a diluted earnings per share of $4.60 for the second quarter of fiscal 2024, representing a 1.1% decrease from the same period in fiscal 2023. For the first six months of fiscal 2024, diluted earnings per share were $8.23, down 2.7% from the first six months of fiscal 2023.
Today the company's shares have moved 0.3% to a price of $363.07. If you want to know more, read the company's complete 10-Q report here.
