| The Home Depot®, the world's largest home improvement retailer, today reported sales of $43.2 billion for the second quarter of fiscal 2024, an increase of 0.6% from the second quarter of fiscal 2023. Total sales include $1.3 billion from the recent acquisition of SRS Distribution Inc. (SRS), which represents approximately six weeks of sales in the quarter. Comparable sales for the second quarter of fiscal 2024 decreased 3.3%, and comparable sales in the U.S. decreased 3.6%. |
| Operating income for the second quarter of fiscal 2024 was $6.5 billion and the operating margin was 15.1%, compared with an operating income of $6.6 billion and an operating margin of 15.4% for the second quarter of fiscal 2023. |
| Adjusted(1) operating income for the second quarter of fiscal 2024 was $6.6 billion and adjusted(1) operating margin was 15.3%, compared with adjusted operating income of $6.6 billion and an adjusted operating margin of 15.5% for the second quarter of fiscal 2023. |
| Net earnings for the second quarter of fiscal 2024 were $4.6 billion, or $4.60 per diluted share, compared with net earnings of $4.7 billion, or $4.65 per diluted share, in the same period of fiscal 2023. |
| Adjusted(1) diluted earnings per share for the second quarter of fiscal 2024 were $4.67, compared with adjusted diluted earnings per share of $4.68 in the same period of fiscal 2023 |
| "The underlying long-term fundamentals supporting home improvement demand are strong," said Ted Decker, chair, president and CEO. "During the quarter, higher interest rates and greater macro-economic uncertainty pressured consumer demand more broadly, resulting in weaker spend across home improvement projects. However, the team continued to navigate this unique environment while executing at a high level. I would like to thank our associates for their hard work and dedication to serving our customers and communities." |
| Fiscal 2024 Guidance |
| The company updated its fiscal 2024 guidance, which includes 53 weeks of operating results, to reflect the performance in the first half of fiscal 2024 and include SRS: |
- Total sales to increase between 2.5% and 3.5% including the 53rd week
· 53rd week projected to add approximately $2.3 billion to total sales
· SRS is expected to contribute approximately $6.4 billion in incremental sales |
- Comparable sales to decline between 3% and 4% for the 52 weeks compared to fiscal 2023
· Comparable sales decline of 3% implies a consumer demand environment consistent with the first half of fiscal 2024
· While comparable sales for the company are not currently on the trajectory for the low end of the range, a 4% decline implies incremental pressure on consumer demand |
- Approximately 12 new stores
- Gross margin of approximately 33.5%
- Operating margin rate to be between 13.5% to 13.6%
- Adjusted operating margin rate to be between 13.8% to 13.9%
- Tax rate of approximately 24%
- Net interest expense of approximately $2.2 billion
- 53-week diluted earnings-per-share-percent decline between 2% and 4%
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| · 53rd week expected to contribute approximately $0.30 of diluted earnings per share compared to fiscal 2023 |
- 53-week adjusted(1), (3) diluted earnings-per-share to decline between 1% and 3%
· 53rd week expected to contribute approximately $0.30 of adjusted diluted earnings per share compared to fiscal 2023 |
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The Home Depot |
