10-Q - HOME DEPOT, INC. (0000354950) (Filer)

Wed, May 28, 10:02 AM (24 days ago)

**The Home Depot, Inc. (HD) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $39.9 billion, up 9.4% YoY, driven by SRS acquisition and seasonal shifts. - **Net Earnings:** $3.4 billion, down 4.7% YoY, with EPS at $3.45, down 5.0% YoY. - **Gross Margin:** 33.8%, down from 34.1% YoY, due to SRS inclusion and supply chain productivity. - **Operating Margin:** 12.9%, down from 13.9% YoY, due to higher SG&A and depreciation expenses. - **Cash Flow:** $4.3 billion from operations, down $1.2 billion YoY due to working capital changes. **Profit Margins & Earnings:** - **Gross Profit Margin:** 33.8%, down from 34.1% YoY. - **Operating Margin:** 12.9%, down from 13.9% YoY. - **Net Margin:** 8.6%, down from 9.9% YoY. **Cash Flow & Earnings Changes:** - **Operating Cash Flow:** $4.3 billion, down $1.2 billion YoY. - **Capital Expenditures:** $806 million, down from $847 million YoY. - **Dividends Paid:** $2.3 billion, up from $2.2 billion YoY. - **Share Repurchases:** Paused since March 2024, $11.7 billion remaining in authorization. **Trends & Uncertainties:** - **Comparable Sales:** Down 0.3% YoY, reflecting macroeconomic uncertainties. - **Online Sales:** Up 10.9% YoY, representing 15.5% of total sales. - **Inventory Turnover:** Down to 4.3x from 4.5x YoY. - **ROIC:** Down to 31.3% from 37.1% YoY, due to higher debt and equity from SRS acquisition. - **Tariffs & Trade:** Monitoring developments, over 50% of U.S. operations sourced domestically. **Future Operations Impact:** - **Capital Expenditures:** Plan to invest $4 billion in fiscal 2025, focusing on customer experience and Pro capabilities. - **Dividends:** Increased quarterly dividend by 2.2% to $2.30 per share. - **Debt Management:** Repaid $500 million in senior notes, renewed credit facilities. **Ticker:** HD