Tue, May 21, 10:02 AM (247 days ago)
The Home Depot, Inc. reported a decrease in net sales for Q1 2024 to $36.4 billion, down 2.3% from $37.3 billion in Q1 2023, largely due to a negative comparable sales environment. Gross profit decreased slightly to $12.4 billion, with an improved margin of 34.1% due to lower transportation costs and shrink. Operating expenses rose to $7.4 billion, driven by increased SG&A and depreciation costs. Net earnings fell to $3.6 billion, resulting in diluted EPS of $3.63, down from $3.82. Cash flow from operations was $5.5 billion, used for dividends, debt repayment, capital expenditures, and share repurchases before pausing in March 2024 due to the pending $18.25 billion acquisition of SRS Distribution Inc. Inventory turnover improved to 4.5 times. The company’s ROIC declined to 37.1% from 43.6%, influenced by lower operating income and paused share repurchases. Future liquidity is supported by cash flow, commercial paper programs, and planned senior note issuances.