The Home Depot first-quarter results

by | May 19, 2022

The Home DepotThe world’s largest home improvement retailer, The Home Depot has reported sales of $38.9 billion for the first quarter of fiscal 2022, an impressive increase of $1.4 billion, or 3.8 per cent from the first quarter of fiscal 2021. When looking at comparable sales the first quarter of fiscal 2022 increased 2.2 per cent with comparable sales in the US increasing 1.7 per cent. 

The reported sales are the highest first-quarter sales in company history, Home Depot Chief Executive Officer and President, Ted Decker said recently.

“The solid performance in the quarter is even more impressive as we were comparing against last year’s historic growth and faced a slower start to spring this year. These results are a direct reflection of our associates’ continued ability to effectively navigate a challenging and dynamic environment. I would like to thank them and our many partners for their hard work and dedication to our customers,” Mr Decker said.

Net earnings for the first quarter of fiscal 2022 were $4.2 billion, or $4.09 per diluted share, compared with net earnings of $4.1 billion, or $3.86 per diluted share in the same period of fiscal 2021 representing a six per cent increase in diluted earnings per share. 

The Home Depot conducted a conference call earlier in this week to discuss information included in the first-quarter results and related matters. The conference call is available in its entirety through a webcast and replay at ir.homedepot.com/events-and-presentations

At the end of the first quarter, The Home Depot operated a total of 2,316 retail stores in all 50 states, the District of Columbia, Puerto Rico, the US Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Home Depot employs approximately 500,000 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. 

Fiscal 2022 Guidance 

The Company raised fiscal 2022 guidance and now expects:

  • Total sales growth and comparable sales growth of approximately three per cent.  
  • Operating margin of approximately 15.4 per cent.
  • Net interest expense of approximately $1.6 billion.
  • Tax rate of approximately 24.6 per cent. 
  • Diluted earnings-per-share-percent-growth to be mid-single digits.