Home Depot reported net sales of $40.2 billion in the third quarter of fiscal 2024, with net earnings of $3.6 billion, or $3.67 per diluted share. For the first nine months of fiscal 2024, net sales were $119.8 billion and net earnings were $11.8 billion, or $11.90 per diluted share.
During the third quarter of fiscal 2024, Home Depot opened five new stores in the U.S., bringing the total store count to 2,345 at October 27, 2024. Sales per retail square foot were $582.97 for the quarter and $604.11 for the first nine months of fiscal 2024, with an inventory turnover ratio of 4.8 times at the end of the third quarter of fiscal 2024.
The company generated $15.1 billion of cash flow from operations during the first nine months of fiscal 2024 and received approximately $10.0 billion of proceeds from the issuance of long-term debt, net of discounts. Home Depot utilized a combination of commercial paper borrowings and the issuance of long-term debt, along with cash on hand, to fund the acquisition of SRS, with cash purchase consideration totaling $17.7 billion. The company also paid $6.7 billion in cash dividends, funded $2.4 billion in capital expenditures, repaid $1.4 billion of long-term debt, and funded $649 million of share repurchases, prior to pausing share repurchases in March 2024.
The Return on Invested Capital (ROIC) for the trailing twelve-month period was 31.5% at the end of the third quarter of fiscal 2024, compared to 38.7% at the end of the third quarter of fiscal 2023. The decrease in ROIC was primarily driven by higher average long-term debt and higher average equity due to the financing of the SRS acquisition, along with lower operating income.
In the third quarter of fiscal 2024, Home Depot reported a 6.6% increase in net sales compared to the same period in fiscal 2023, primarily driven by SRS, which contributed $2.9 billion of net sales. Online sales represented 14.0% of net sales during the quarter and increased by 4.0% compared to the third quarter of fiscal 2023.
The company's gross profit for the third quarter of fiscal 2024 increased 5.4% to $13.4 billion, with a gross profit margin of 33.4%. Operating expenses, including Selling, General & Administrative and Depreciation and Amortization, increased by 8.5% and 16.4% respectively, compared to the third quarter of fiscal 2023.
For the first nine months of fiscal 2024, Home Depot reported a 1.6% increase in net sales compared to the same period in fiscal 2023, primarily driven by SRS, which contributed $4.2 billion of net sales. Total comparable sales for the first nine months of fiscal 2024 decreased 2.5%, reflecting a 1.5% decrease in comparable customer transactions and a 1.2% decrease in comparable average ticket compared to the first nine months of fiscal 2023.
Diluted earnings per share were $3.67 for the third quarter of fiscal 2024, compared to $3.81 for the third quarter of fiscal 2023, and $11.90 for the first nine months of fiscal 2024, compared to $12.28 for the first nine months of fiscal 2023. As a result of these announcements, the company's shares have moved -1.4% on the market, and are now trading at a price of $404.55. If you want to know more, read the company's complete 10-Q report here.
