The Home Depot Announces Fourth Quarter and Fiscal 2025 Results; Increases Quarterly Dividend by 1.3%;Provides Fiscal 2026 Guidance
Fourth Quarter 2025
Sales for the fourth quarter of fiscal 2025 had been
Comparable gross sales for the fourth quarter of fiscal 2025 elevated 0.4%, and comparable gross sales within the U.S. elevated 0.3%.
Net earnings for the fourth quarter of fiscal 2025 had been
Adjusted(1) diluted earnings per share for the fourth quarter of fiscal 2025 had been
Fiscal 2025
Sales for fiscal 2025 had been
Net earnings for fiscal 2025 had been
Adjusted(1) diluted earnings per share for fiscal 2025 had been
“Throughout fiscal 2025, our teams did an incredible job engaging with our customers and growing market share, and I would like to thank them for their hard work and dedication,” mentioned Ted Decker, chair, president and CEO. “For the fourth quarter, our results were largely in-line with our expectations, reflecting the lack of storm activity in the third quarter and ongoing consumer uncertainty and pressure in housing. Adjusting for storms, underlying demand was relatively stable throughout the year.”
Dividend Declaration
The Company right now introduced that its board of administrators authorised a 1.3% improve in its quarterly dividend to
The dividend is payable on March 26, 2026, to shareholders of file on the shut of enterprise on March 12, 2026. This is the 156th consecutive quarter the Company has paid a money dividend.
Fiscal 2026 Guidance
The firm offers the next steering for fiscal 2026:
- Total gross sales progress of roughly 2.5% to 4.5%
- Comparable gross sales progress of roughly flat to 2.0%
- Approximately 15 new shops
- Gross margin of roughly 33.1%
- Operating margin of roughly 12.4% to 12.6%
- Adjusted(1) working margin of roughly 12.8% to 13.0%
- Effective tax price of roughly 24.3%
- Net curiosity expense of roughly
$2.3 billion - Diluted earnings-per-share to develop roughly flat to 4.0% from
$14.23 in fiscal 2025 - Adjusted(1) diluted earnings-per-share to develop roughly flat to 4.0% from
$14.69 in fiscal 2025 - Capital expenditures of roughly 2.5% of complete gross sales
(1) | The Company stories its monetary leads to accordance with |
The Home Depot will conduct a convention name right now at 9 a.m. ET to debate info included on this information launch and associated issues. The convention name can be obtainable in its entirety by way of a webcast and replay at ir.homedepot.com/events-and-presentations.
At the tip of the fourth quarter, the corporate operated a complete of two,359 retail shops and over 1,250 SRS areas throughout all 50 states, the
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained herein represent “forward-looking statements” underneath the federal securities legal guidelines, together with as outlined within the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based mostly on presently obtainable info and our present assumptions, expectations and projections about future occasions, and use phrases corresponding to “may,” “will,” “could,” “should,” “would,” “anticipate,” “intend,” “estimate,” “project,” “plan,” “believe,” “expect,” “target,” “prospects,” “potential,” “commit” and “forecast,” or phrases of comparable import or which means or seek advice from future time intervals. Forward-looking statements might relate to, amongst different issues: our model and fame; the demand for our merchandise and companies, together with because of macroeconomic circumstances and altering buyer preferences and expectations; internet gross sales progress; comparable gross sales; the consequences of competitors; implementation of interconnected retail, retailer, provide chain, expertise, innovation and different strategic initiatives, together with with respect to actual property; stock, on-shelf availability, and in-stock positions; the state of the financial system; the state of the housing and house enchancment markets; the state of the credit score markets, together with mortgages, house fairness loans, and client and commerce credit score; the impression of tariffs; commerce coverage modifications or restrictions, or worldwide commerce disputes and efforts and capacity to proceed to diversify our provide chain; points associated to the fee strategies we settle for; demand for credit score choices together with commerce credit score; administration of relationships with our associates, jobseekers, suppliers and service suppliers; value and availability of labor; prices of gas and different vitality sources; occasions that might disrupt our enterprise, provide chain, expertise infrastructure, or demand for our merchandise and companies, corresponding to tariffs, commerce coverage modifications or restrictions or worldwide commerce disputes, pure disasters, local weather change, public well being points, cybersecurity occasions, labor disputes, geopolitical tensions or conflicts, navy conflicts, or acts of warfare; our capacity to keep up a protected and safe retailer surroundings; our capacity to handle expectations concerning sustainability and human capital administration issues and meet associated objectives; continuation or suspension of share repurchases; internet earnings and margin efficiency; earnings per share; future dividends; capital allocation and expenditures; productiveness;liquidity; return on invested capital; expense and debt leverage; modifications in rates of interest; modifications in international forex trade charges; commodity or different worth inflation and deflation; our capacity to difficulty debt on phrases and at charges acceptable to us; the impression and anticipated end result of investigations, inquiries, claims, and litigation, together with compliance with associated settlements; the challenges of working in worldwide markets; the adequacy of insurance coverage protection; the impact of accounting costs; the impact of adopting sure accounting requirements; the impression of authorized and regulatory modifications, together with govt orders and different administrative or legislative actions, corresponding to modifications to tax legal guidelines and laws; retailer openings and closures; monetary outlook, together with steering for fiscal 2026; and the impression of acquired corporations, together with SRS and GMS, on our group and the power to acknowledge the anticipated advantages of accomplished or pending acquisitions.
These statements usually are not ensures of future efficiency and are topic to future occasions, dangers and uncertainties – a lot of that are past our management, depending on the actions of third events, or presently unknown to us – in addition to doubtlessly inaccurate assumptions that might trigger precise outcomes to vary materially from our historic expertise and our expectations and projections. These dangers and uncertainties embrace, however usually are not restricted to, these described in Part I, Item 1A. “Risk Factors,” and elsewhere in our Annual Report on Form 10-Ok for our fiscal yr ended February 2, 2025 and additionally as described occasionally in stories subsequently filed with the Securities and Exchange Commission. There additionally could also be different elements that we can not anticipate or that aren’t described herein, typically as a result of we don’t presently understand them to be materials. Such elements may trigger outcomes to vary materially from our expectations. Forward-looking statements communicate solely as of the date they’re made, and we don’t undertake to replace these statements aside from as required by legislation. You are suggested, nonetheless, to evaluation any additional disclosures we make on associated topics in our filings with the Securities and Exchange Commission and in our different public statements.
Non-GAAP Financial Measures
To present further transparency, we complement our disclosure with sure non-GAAP monetary measures. When used at the side of our GAAP monetary measures, we imagine these supplemental non-GAAP monetary measures will assist administration and traders to raised perceive and analyze our efficiency. However, this supplemental info shouldn’t be thought-about in isolation or as an alternative choice to the associated GAAP measures. Refer to the tip of this launch for a proof and definitions of those non-GAAP monetary measures and reconciliations to essentially the most immediately comparable GAAP measures.
THE HOME DEPOT, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) | |||||||||||
Three Months Ended (1) | Fiscal Year Ended (2) | ||||||||||
in hundreds of thousands, besides per share information | February 1, | February 2, | % | February 1, | February 2, | % | |||||
Net gross sales | (3.8) % | 3.2 % | |||||||||
Cost of gross sales | 25,732 | 26,670 | (3.5) | 109,818 | 106,206 | 3.4 | |||||
Gross revenue | 12,466 | 13,034 | (4.4) | 54,865 | 53,308 | 2.9 | |||||
Operating bills: | |||||||||||
Selling, common and administrative | 7,772 | 7,725 | 0.6 | 30,702 | 28,748 | 6.8 | |||||
Depreciation and amortization | 845 | 814 | 3.8 | 3,273 | 3,034 | 7.9 | |||||
Total working bills | 8,617 | 8,539 | 0.9 | 33,975 | 31,782 | 6.9 | |||||
Operating earnings | 3,849 | 4,495 | (14.4) | 20,890 | 21,526 | (3.0) | |||||
Interest and different (earnings) expense: | |||||||||||
Interest earnings and different, internet | (43) | (30) | 43.3 | (124) | (201) | (38.3) | |||||
Interest expense | 594 | 638 | (6.9) | 2,412 | 2,321 | 3.9 | |||||
Interest and different, internet | 551 | 608 | (9.4) | 2,288 | 2,120 | 7.9 | |||||
Earnings earlier than provision for earnings taxes | 3,298 | 3,887 | (15.2) | 18,602 | 19,406 | (4.1) | |||||
Provision for earnings taxes | 727 | 890 | (18.3) | 4,446 | 4,600 | (3.3) | |||||
Net earnings | $ 2,571 | $ 2,997 | (14.2) % | $ 14,156 | $ 14,806 | (4.4) % | |||||
Basic weighted common widespread shares | 993 | 991 | 0.2 % | 993 | 990 | 0.3 % | |||||
Basic earnings per share | $ 2.59 | $ 3.02 | (14.2) | $ 14.26 | $ 14.96 | (4.7) | |||||
Diluted weighted common widespread shares | 995 | 994 | 0.1 % | 995 | 993 | 0.2 % | |||||
Diluted earnings per share | $ 2.58 | $ 3.02 | (14.6) | $ 14.23 | $ 14.91 | (4.6) | |||||
Three Months Ended (1) | Fiscal Year Ended (2) | ||||||||||
Selected gross sales information: | February 1, | February 2, | % | February 1, | February 2, | % | |||||
Comparable gross sales (% change) | 0.4 % | 0.8 % | N/A | 0.3 % | (1.8) % | N/A | |||||
Comparable buyer transactions (% change) (3) | (1.6) % | 0.6 % | N/A | (1.0) % | (1.0) % | N/A | |||||
Comparable common ticket (% change) (3) | 2.4 % | 0.2 % | N/A | 1.4 % | (0.9) % | N/A | |||||
Customer transactions (in hundreds of thousands) (3) | 366.5 | 400.4 | (8.5) % | 1,601.5 | 1,637.2 | (2.2) % | |||||
Average ticket (3) | $ 91.28 | $ 89.11 | 2.4 | $ 90.56 | $ 89.31 | 1.4 | |||||
_________ | |
(1) | Three months ended February 1, 2026 contains 13 weeks. Three months ended February 2, 2025 contains 14 weeks. |
(2) | Fiscal yr ended February 1, 2026 contains 52 weeks. Fiscal yr ended February 2, 2025 contains 53 weeks. |
(3) | Customer transactions and common ticket measures do not embrace outcomes from HD Supply or SRS (together with GMS). |
THE HOME DEPOT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||
in hundreds of thousands | February 1, | February 2, | |
Assets | |||
Current belongings: | |||
Cash and money equivalents | $ 1,389 | $ 1,659 | |
Receivables, internet | 5,597 | 4,903 | |
Merchandise inventories | 25,817 | 23,451 | |
Other present belongings | 1,588 | 1,670 | |
Total present belongings | 34,391 | 31,683 | |
Net property and gear | 28,021 | 26,702 | |
Operating lease right-of-use belongings | 9,204 | 8,592 | |
Goodwill | 22,344 | 19,475 | |
Intangible belongings, internet | 10,329 | 8,983 | |
Other belongings | 806 | 684 | |
Total belongings | $ 105,095 | $ 96,119 | |
Liabilities and Stockholders’ Equity | |||
Current liabilities: | |||
Short-term debt | $ 4,464 | $ 316 | |
Accounts payable | 11,491 | 11,938 | |
Accrued salaries and associated bills | 2,529 | 2,315 | |
Current installments of long-term debt | 4,967 | 4,582 | |
Current working lease liabilities | 1,418 | 1,274 | |
Other present liabilities | 7,555 | 8,236 | |
Total present liabilities | 32,424 | 28,661 | |
Long-term debt, excluding present installments | 46,341 | 48,485 | |
Long-term working lease liabilities | 8,160 | 7,633 | |
Other long-term liabilities | 5,357 | 4,700 | |
Total liabilities | 92,282 | 89,479 | |
Total stockholders’ fairness | 12,813 | 6,640 | |
Total liabilities and stockholders’ fairness | $ 105,095 | $ 96,119 | |
THE HOME DEPOT, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||
Fiscal Year Ended (1) | |||
in hundreds of thousands | February 1, | February 2, | |
Cash Flows from Operating Activities: | |||
Net earnings | $ 14,156 | $ 14,806 | |
Reconciliation of internet earnings to internet money offered by working actions: | |||
Depreciation and amortization, excluding amortization of intangible belongings | 3,514 | 3,336 | |
Intangible asset amortization | 607 | 425 | |
Stock-based compensation expense | 522 | 442 | |
Changes in working capital | (3,084) | 679 | |
Changes in deferred earnings taxes | 418 | 15 | |
Other working actions | 192 | 107 | |
Net money offered by working actions | 16,325 | 19,810 | |
Cash Flows from Investing Activities: | |||
Capital expenditures | (3,679) | (3,485) | |
Payments for companies acquired, internet | (5,410) | (17,644) | |
Other investing actions | 109 | 98 | |
Net money utilized in investing actions | (8,980) | (21,031) | |
Cash Flows from Financing Activities: | |||
Proceeds from short-term debt, internet | 4,148 | 316 | |
Proceeds from long-term debt, internet of reductions | 2,161 | 10,010 | |
Repayments of long-term debt | (5,040) | (1,536) | |
Repurchases of widespread inventory | — | (649) | |
Proceeds from gross sales of widespread inventory | 314 | 395 | |
Cash dividends | (9,152) | (8,929) | |
Other financing actions | (145) | (301) | |
Net money utilized in financing actions | (7,714) | (694) | |
Change in money and money equivalents | (369) | (1,915) | |
Effect of trade price modifications on money and money equivalents | 99 | (186) | |
Cash and money equivalents at starting of interval | 1,659 | 3,760 | |
Cash and money equivalents at finish of interval | $ 1,389 | $ 1,659 | |
________ | |
(1) | Fiscal yr ended February 1, 2026 contains 52 weeks. Fiscal yr ended February 2, 2025 contains 53 weeks. |
NON-GAAP FINANCIAL MEASURES
Adjusted working earnings, adjusted working margin (calculated as adjusted working earnings divided by complete internet gross sales), and adjusted diluted earnings per share are introduced as supplemental monetary measures within the analysis of our enterprise that aren’t required by or introduced in accordance with GAAP. The Company excludes the impression of amortization expense from acquired intangible belongings from adjusted working earnings and adjusted working margin, and the impression of amortization expense from acquired intangible belongings, together with the associated tax results, from adjusted diluted earnings per share. We don’t modify for the income that’s generated partially from using our acquired intangible belongings. Amortization expense, not like the associated income, isn’t affected by operations in any specific interval until an intangible asset turns into impaired, or the helpful lifetime of an intangible asset is revised.
When used at the side of our GAAP outcomes, we imagine these non-GAAP measures present traders with significant supplemental measures of our efficiency interval to interval, make it simpler for traders to check our underlying enterprise efficiency to friends, and align to how administration analyzes developments and evaluates efficiency internally. The Company offers non-GAAP monetary info on this foundation to facilitate comparability after we report earnings outcomes. These non-GAAP measures shouldn’t be thought-about in isolation or as an alternative choice to their comparable GAAP monetary measures. Investors ought to rely totally on our GAAP outcomes and use non-GAAP monetary measures solely supplementally in making funding selections. Our calculation of non-GAAP measures will not be corresponding to equally titled measures reported by different corporations and different corporations might not outline these non-GAAP monetary measures in the identical means, which can restrict their usefulness as comparative measures.
RECONCILIATION OF ADJUSTED OPERATING INCOME AND ADJUSTED OPERATING MARGIN | |||||||||||
Three Months Ended (1) | Fiscal Year Ended (2) | ||||||||||
USD in hundreds of thousands | February 1, | February 2, | % | February 1, | February 2, | % | |||||
Operating earnings (GAAP) | $ 3,849 | $ 4,495 | (14.4) % | $ 20,890 | $ 21,526 | (3.0) % | |||||
Operating margin (3) | 10.1 % | 11.3 % | 12.7 % | 13.5 % | |||||||
Acquired intangible asset amortization (4) | 171 | 145 | 607 | 425 | |||||||
Adjusted working earnings (Non-GAAP) | $ 4,020 | $ 4,640 | (13.4) % | $ 21,497 | $ 21,951 | (2.1) % | |||||
Adjusted working margin (Non-GAAP) (5) | 10.5 % | 11.7 % | 13.1 % | 13.8 % | |||||||
________ | |
(1) | Three months ended February 1, 2026 and February 2, 2025 contains 13 and 14 weeks, respectively. |
(2) | Fiscal yr ended February 1, 2026 and February 2, 2025 contains 52 and 53 weeks, respectively. |
(3) | Operating margin is calculated as working earnings divided by complete internet gross sales. |
(4) | Amounts embrace acquired intangible asset amortization of |
(5) | Adjusted working margin is calculated as adjusted working earnings divided by complete internet gross sales. |
Our adjusted working margin steering for fiscal 2026 excludes an anticipated roughly 40 foundation level impression from acquired intangible asset amortization.
RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE | |||||||||||
Three Months Ended (1) | Fiscal Year Ended (2) | ||||||||||
per share quantities | February 1, | February 2, | % | February 1, | February 2, | % | |||||
Diluted earnings per share (GAAP) | $ 2.58 | $ 3.02 | (14.6) % | $ 14.23 | $ 14.91 | (4.6) % | |||||
Impact of acquired intangible asset amortization | 0.17 | 0.14 | 0.61 | 0.43 | |||||||
Income tax impression of non-GAAP adjustment (3) | (0.03) | (0.03) | (0.15) | (0.10) | |||||||
Adjusted diluted earnings per share (Non-GAAP) | $ 2.72 | $ 3.13 | (13.1) % | $ 14.69 | $ 15.24 | (3.6) % | |||||
________ | |
(1) | Three months ended February 1, 2026 and February 2, 2025 contains 13 and 14 weeks, respectively. The 14th week of the fourth quarter of fiscal 2024 elevated adjusted diluted earnings per share by roughly |
(2) | Fiscal yr ended February 1, 2026 and February 2, 2025 contains 52 and 53 weeks, respectively. The 53rd week of fiscal 2024 elevated adjusted diluted earnings per share by roughly |
(3) | Calculated because the per share impression of acquired intangible asset amortization multiplied by the Company’s efficient tax price for the interval. |
Our adjusted diluted earnings per share steering for fiscal 2026 excludes an anticipated after-tax impression of roughly
View authentic content material to obtain multimedia:https://www.prnewswire.com/news-releases/the-home-depot-announces-fourth-quarter-and-fiscal-2025-results-increases-quarterly-dividend-by-1-3-provides-fiscal-2026-guidance-302695184.htmlSOURCE The Home Depot
