Diluted Earnings Per Share Increase 115

The Home Depot, Inc. Reports Strong Third Quarter Results

Diluted Earnings Per Share Increase 11.5%

Company Raises Full-Year Guidance

ATLANTA, August 17, 2023 – The Home Depot, Inc. (NYSE: HD) today reported financial results for its third quarter ended July 31, 2023. Diluted earnings per share (EPS) for the quarter were $5.02, an increase of 11.5% compared to $4.50 in the prior year. Net sales for the quarter were $51.2 billion, an increase of 5.8% compared to $48.3 billion in the prior year.

“We are pleased to report strong third quarter results, which demonstrate the continued resilience of the home improvement market and the strength of our business model,” said Craig Menear, Chairman and CEO of The Home Depot. “Our team delivered a very strong execution on sales, operating efficiency and inventory control, while continuing to invest in our associates and our business. We are raising our full-year guidance as we expect the healthy demand environment to continue.

The Home Depot’s comparable sales increased by 6.3% in the third quarter, with growth in both the U.S. and Canada. The company’s average ticket increased by 8.8%, driven by higher prices and increased demand for project-related merchandise. The company’s gross margin was 34.3% in the third quarter, a decrease of 26 basis points compared to 34.6% in the prior year. The decrease in gross margin was primarily due to higher freight costs. The company’s operating expenses were $14.5 billion in the third quarter, an increase of 6.0% compared to $13.7 billion in the prior year. The increase in operating expenses was primarily due to higher wages and benefits costs.

The Home Depot ended the third quarter with $32.7 billion in cash and cash equivalents. The company returned $1.8 billion to shareholders in the third quarter through dividends and share repurchases. The company also announced today that it will raise its quarterly dividend by 10% to $2.10 per share. The new dividend is payable on December 1, 2023, to shareholders of record as of November 15, 2023.

The Home Depot raised its full-year guidance for diluted EPS to a range of $17.75 to $18.00. The company previously expected diluted EPS to be in the range of $17.50 to $17.80.