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The Home Depot Announces Second Quarter Results; Raises Fiscal Year 2013 Guidance
  

ATLANTA, Aug. 20, 2013 /PRNewswire/ -- The Home Depot®, the world's largest home improvement retailer, today reported sales of $22.5 billion for the second quarter of fiscal 2013. On a like for like basis, comparable store sales for the second quarter of fiscal 2013 were positive 10.7 percent, and comp sales for U.S. stores were positive 11.4 percent. Total sales increased 9.5 percent from the second quarter of fiscal 2012. Due to the 14th week in the fourth quarter of fiscal 2012, second quarter sales were impacted by a calendar timing change that resulted in one less week of spring sales in the second quarter when compared to the same period of fiscal 2012. This shift reduced total sales growth by approximately $249 million or 120 basis points.

(Logo: http://photos.prnewswire.com/prnh/20030502/HOMEDEPOTLOGO )

Net earnings for the second quarter were $1.8 billion, or $1.24 per diluted share, compared with net earnings of $1.5 billion, or $1.01 per diluted share, in the same period of fiscal 2012. For the second quarter of fiscal 2013, diluted earnings per share increased 22.8 percent from the same period in the prior year.  

"The second quarter results exceeded our expectations as our business benefited from a rebound in our seasonal categories, continued strength in the core of the store and the recovering housing market in the U.S.," said Frank Blake, chairman & CEO. "Our associates did an outstanding job of responding to the strong increased demand.  I would like to thank them for their hard work and dedication."

Updated Fiscal 2013 Guidance

Based on its year-to-date performance and outlook for the balance of the year, the Company raised its fiscal 2013 sales guidance and now expects sales to be up approximately 4.5 percent with comparable store sales up approximately 6.0 percent for the year. The Company raised its fiscal 2013 diluted earnings-per-share guidance and now expects diluted earnings per share to be up approximately 20 percent to $3.60 for the year. The Company's fiscal 2013 sales and earnings-per-share guidance is based on a 52-week year compared to fiscal 2012, a 53-week year.

This earnings-per-share guidance includes the benefit of the Company's year-to-date share repurchases totaling $4.3 billion and the Company's intent to repurchase $2.2 billion of additional shares over the remainder of the year.

The Home Depot will conduct a conference call today at 9 a.m. ET to discuss information included in this news release and related matters. The conference call will be available in its entirety through a webcast and replay at earnings.homedepot.com.

At the end of the second quarter, the Company operated a total of 2,258 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs more than 300,000 associates. The Home Depot's stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor's 500 index.

Certain statements contained herein constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may relate to, among other things, the demand for our products and services, net sales growth, comparable store sales, state of the economy, state of the residential construction, housing and home improvement markets, state of the credit markets, including mortgages, home equity loans and consumer credit, inventory and in-stock positions, commodity price inflation and deflation, implementation of store and supply chain initiatives, continuation of share repurchase programs, net earnings performance, earnings per share, capital allocation and expenditures, liquidity, return on invested capital, management of relationships with our suppliers and vendors, stock-based compensation expense, the effect of accounting charges, the effect of adopting certain accounting standards, the ability to issue debt on terms and at rates acceptable to us, store openings and closures, expense leverage, guidance for fiscal 2013 and beyond and financial outlook.  Forward-looking statements are based on currently available information and our current assumptions, expectations and projections about future events. You should not rely on our forward-looking statements. These statements are not guarantees of future performance and are subject to future events, risks and uncertainties – many of which are beyond our control or are currently unknown to us – as well as potentially inaccurate assumptions that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include but are not limited to those described in Item 1A, "Risk Factors," and elsewhere in our Annual Report on Form 10-K for our fiscal year ended February 3, 2013 and in our subsequent Quarterly Reports on Form 10-Q.

Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our periodic filings with the Securities and Exchange Commission.

 

 

 

THE HOME DEPOT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE AND SIX MONTHS ENDED AUGUST 4, 2013 AND JULY 29, 2012

(Unaudited)

(Amounts in Millions Except Per Share Data and as Otherwise Noted)

 


Three Months Ended




Six Months Ended




August 4,

2013


July 29,

2012


% Increase

(Decrease)


August 4,

2013


July 29,

2012


% Increase

(Decrease)

NET SALES

$

22,522



$

20,570



9.5

%


$

41,646



$

38,378



 

8.5

%

Cost of Sales

14,801



13,544



9.3



27,246



25,169



8.3


GROSS PROFIT

7,721



7,026



9.9



14,400



13,209



9.0


Operating Expenses:












Selling, General and Administrative

4,294



4,066



5.6



8,477



8,152



4.0


Depreciation and Amortization

409



391



4.6



811



774



4.8


   Total Operating Expenses

4,703



4,457



5.5



9,288



8,926



4.1


OPERATING INCOME

3,018



2,569



17.5



5,112



4,283



19.4


Interest and Other (Income) Expense:












Interest and Investment Income

(2)



(4)



(50.0)



(5)



(9)



(44.4)


Interest Expense

174



155



12.3



338



311



8.7


Other









(67)



(100.0)


   Interest and Other, net

172



151



13.9



333



235



41.7


EARNINGS BEFORE PROVISION FOR

INCOME TAXES

2,846



2,418



17.7



4,779



4,048



18.1


Provision for Income Taxes

1,051



886



18.6



1,758



1,481



18.7














NET EARNINGS

$

1,795



$

1,532



17.2

%


$

3,021



$

2,567



17.7

%













Weighted Average Common Shares

1,434



1,501



(4.5)

%


1,452



1,513



(4.0)

%

BASIC EARNINGS PER SHARE

$

1.25



$

1.02



22.5



$

2.08



$

1.70



22.4














Diluted Weighted Average Common Shares

1,443



1,512



(4.6)

%


1,462



1,525



(4.1)

%

DILUTED EARNINGS PER SHARE

$

1.24



$

1.01



22.8



$

2.07



$

1.68



23.2















Three Months Ended




Six Months Ended



SELECTED HIGHLIGHTS

August 4,

2013


July 29,

2012


% Increase

(Decrease)


August 4,

2013


July 29,

2012


% Increase

(Decrease)

Number of Customer Transactions

393.2



374.9



4.9

%


730.3



703.9



3.8

%

Average Ticket (actual)

$

57.39



$

55.02



4.3



$

57.32



$

54.78



4.6


Weighted Average Weekly Sales per

Operating Store (in thousands)

$

768



$

704



9.1



$

713



$

658



8.4


Square Footage at End of Period

235



236



(0.4)



235



236



(0.4)


Capital Expenditures

$

321



$

323



(0.6)



$

599



$

551



8.7


Depreciation and Amortization (1)

$

442



$

423



4.5

%


$

877



$

833



5.3

%

 —————

(1) Includes depreciation of distribution centers and tool rental equipment included in Cost of Sales and amortization of deferred financing costs included in Interest Expense.

 

 

THE HOME DEPOT, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF AUGUST 4, 2013, JULY 29, 2012 AND FEBRUARY 3, 2013

(Unaudited)

(Amounts in Millions)

 


August 4,

2013


July 29,

2012


February 3,

2013

ASSETS






Cash and Cash Equivalents

$

3,419



$

2,810



$

2,494


Receivables, net

1,542



1,505



1,395


Merchandise Inventories

11,086



10,910



10,710


Other Current Assets

848



1,006



773


   Total Current Assets

16,895



16,231



15,372


Property and Equipment, net

23,650



24,154



24,069


Goodwill

1,170



1,157



1,170


Other Assets

477



441



473


   TOTAL ASSETS

$

42,192



$

41,983



$

41,084








LIABILITIES AND STOCKHOLDERS' EQUITY






Accounts Payable

$

6,585



$

6,137



$

5,376


Accrued Salaries and Related Expenses

1,423



1,370



1,414


Current Installments of Long-Term Debt

1,308



34



1,321


Other Current Liabilities

3,679



3,693



3,351


   Total Current Liabilities

12,995



11,234



11,462


Long-Term Debt, excluding current installments

11,450



10,771



9,475


Other Long-Term Liabilities

2,269



2,344



2,370


   Total Liabilities

26,714



24,349



23,307


Total Stockholders' Equity

15,478



17,634



17,777


   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

42,192



$

41,983



$

41,084


 

 

 

THE HOME DEPOT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED AUGUST 4, 2013 AND JULY 29, 2012

(Unaudited)

(Amounts in Millions)

 


Six Months Ended


August 4,

2013


July 29,

2012

CASH FLOWS FROM OPERATING ACTIVITIES:




Net Earnings

$

3,021



$

2,567


Reconciliation of Net Earnings to Net Cash Provided by Operating Activities:




Depreciation and Amortization

877



833


Stock-Based Compensation Expense

116



107


Changes in Working Capital and Other

704



754


Net Cash Provided by Operating Activities

4,718



4,261


CASH FLOWS FROM INVESTING ACTIVITIES:




Capital Expenditures

(599)



(551)


Payments for Businesses Acquired, net

(13)



(45)


Proceeds from Sales of Property and Equipment

16



15


Net Cash Used in Investing Activities

(596)



(581)


CASH FLOWS FROM FINANCING ACTIVITIES:




Proceeds from Long-Term Borrowings, net of discount

1,994




Repayments of Long-Term Debt

(17)



(16)


Repurchases of Common Stock

(4,346)



(2,630)


Proceeds from Sales of Common Stock

150



553


Cash Dividends Paid to Stockholders

(1,143)



(880)


Other

154



122


Net Cash Used in Financing Activities

(3,208)



(2,851)


Change in Cash and Cash Equivalents

914



829


Effect of Exchange Rate Changes on Cash and Cash Equivalents

11



(6)


Cash and Cash Equivalents at the Beginning of the Period

2,494



1,987


Cash and Cash Equivalents at the End of the Period

$

3,419



$

2,810


 

 

SOURCE The Home Depot