HOME DEPOT, INC. reported its financial results for the first quarter of fiscal 2025, revealing a net sales increase of 9.4% to $39.9 billion from the first quarter of fiscal 2024. Net earnings were $3.4 billion, or $3.45 per diluted share, a decrease from $3.6 billion, or $3.63 per diluted share, in the first quarter of fiscal 2024.
The company opened three new stores in the U.S., bringing the total store count to 2,350 as of May 4, 2025. The inventory turnover ratio was 4.3 times at the end of the first quarter of fiscal 2025, compared to 4.5 times in the same period of the previous fiscal year.
HOME DEPOT, INC. generated $4.3 billion of cash flow from operations during the first three months of fiscal 2025. The cash flow, together with cash on hand, was used to fund cash payments of $2.3 billion for dividends, repay $1.1 billion of long-term debt, and repay $278 million of net commercial paper borrowings. Additionally, the company funded $806 million in capital expenditures.
The company's ROIC for the trailing twelve-month period was 31.3% at the end of the first quarter of fiscal 2025, compared to 37.1% at the end of the first quarter of fiscal 2024. 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 in the second quarter of fiscal 2024.
In terms of sales performance, net sales for the first quarter of fiscal 2025 were primarily driven by the contribution of $2.6 billion from SRS, which was acquired in the second quarter of fiscal 2024. Online sales represented 15.5% of net sales during the first quarter of fiscal 2025 and increased by 10.9% compared to the first quarter of fiscal 2024.
Comparable sales for the first quarter of fiscal 2025 decreased by 0.3%, reflecting a 0.5% decrease in comparable customer transactions and a flat comparable average ticket compared to the first quarter of fiscal 2024. The company attributed the performance to macroeconomic uncertainties and other factors, including a persisting high-interest rate environment pressuring home improvement demand.
The company's gross profit for the first quarter of fiscal 2025 increased by 8.3% to $13.5 billion from the first quarter of fiscal 2024, with a gross profit margin of 33.8% compared to 34.1% in the same period of the previous fiscal year.
Operating expenses, including selling, general & administrative and depreciation and amortization, increased in the first quarter of fiscal 2025. Interest and other, net also increased by 38.1%, primarily due to higher interest expense driven by higher long-term debt.
HOME DEPOT, INC. had $1.4 billion in cash and cash equivalents at May 4, 2025, with $811 million held by its foreign subsidiaries. The company believes its current cash position, cash flow generated from operations, funds available from its commercial paper program, and access to the long-term debt capital markets should be sufficient to meet its operating requirements and other obligations, as well as to invest in the business, fund dividend payments, and fund any share repurchases through the next several fiscal years.
In March 2024, the company paused share repurchases in connection with the acquisition of SRS and does not have plans to resume share repurchases in fiscal 2025. It invested approximately $806 million back into its business in the form of capital expenditures during the first three months of fiscal 2025 and plans to invest approximately $4 billion back into its business in the form of capital expenditures in fiscal 2025. The company also announced a 2.2% increase in its quarterly cash dividend to $2.30 per share in February 2025 and paid cash dividends of $2.3 billion to shareholders during the first three months of fiscal 2025. As a result of these announcements, the company's shares have moved 2.12% on the market, and are now trading at a price of $370.40. If you want to know more, read the company's complete 10-Q report here.
