Home Depot's Fiscal 2024 Net Sales Hit $159.5B

By Tamara Parker • Friday, March 21 18:42 • Permanent Link

Home Depot's fiscal 2024 saw net sales of $159.5 billion, with net earnings at $14.8 billion, or $14.91 per diluted share. The company opened ten new stores in the U.S. and two in Mexico, bringing the total store count to 2,347. Sales per retail square foot were $599.92, and the inventory turnover ratio improved to 4.7 times. Operating expenses increased by 8.1% to $28.7 billion, primarily due to higher payroll costs and a negative comparable sales environment. The company generated $19.8 billion in cash flow from operations, received $10.0 billion from long-term debt issuance, and $316 million from commercial paper borrowings. Home Depot paid $8.9 billion in cash dividends, funded $3.5 billion in capital expenditures, repaid $1.5 billion of long-term debt, and funded $649 million of share repurchases.

The acquisition of SRS, a leading residential specialty trade distribution company, added $6.4 billion to net sales. Comparable sales decreased by 1.8%, driven by a 1.0% decrease in comparable customer transactions and a 0.9% decrease in comparable average ticket. Gross profit increased by 4.6% to $53.3 billion, with a gross profit margin of 33.4%. Interest and other, net, increased by 20.1% to $2.1 billion, primarily due to higher interest expense driven by higher long-term debt. The company's ROIC was 31.3% for fiscal 2024, reflecting a decrease from 36.7% in fiscal 2023, mainly due to higher average long-term debt and equity from financing the SRS acquisition.

At the end of fiscal 2024, Home Depot had $1.7 billion in cash and cash equivalents, with $1.1 billion held by foreign subsidiaries. The company plans to invest approximately $4 billion in capital expenditures in fiscal 2025 and announced a 2.2% increase in its quarterly cash dividend to $2.30 per share. Share repurchases were paused in March 2024, and the company does not have plans to resume them in fiscal 2025. As a result of these announcements, the company's shares have moved -1.2% on the market, and are now trading at a price of $351.15. Check out the company's full 10-K submission here.

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