Tue, Aug 20, 10:02 AM (147 days ago)
In Q2 2024, Home Depot reported net sales of $43.2 billion, a slight increase from $42.9 billion in Q2 2023, primarily driven by the acquisition of SRS and new store openings. Net earnings were $4.6 billion, or $4.60 per diluted share, reflecting a decrease in comparable sales by 3.3%, attributed to macroeconomic uncertainties and a high interest rate environment affecting home improvement demand. Gross profit rose to $14.4 billion, with a margin of 33.4%, supported by lower transportation costs. Operating expenses increased due to higher SG&A and depreciation costs related to the SRS acquisition. Cash flow from operations totaled $10.9 billion, while cash used for investing activities surged to $19.1 billion, primarily due to the SRS acquisition. Home Depot's liquidity remains robust, with $1.6 billion in cash and significant access to credit. The company paused share repurchases in March 2024 in anticipation of the acquisition, and its return on invested capital (ROIC) decreased to 31.9% from 41.5% in the previous year, mainly due to increased debt levels post-acquisition. Overall, the company navigates uncertainties while positioning for growth post-acquisition.