International DIY News
The Home Depot Reports FY2022 Results
- The Home Depot announces fourth quarter and fiscal 2022 results;
- Plans to invest approximately $1 billion in annualized compensation for frontline, hourly associates;
- Increases quarterly dividend by 10 percent;
- Provides fiscal 2023 guidance
The Home Depot®, the world's largest home improvement retailer, today reported fourth quarter and fiscal 2022 results.
Fourth Quarter 2022
Sales for the fourth quarter of fiscal 2022 were $35.8 billion, an increase of $112 million, or 0.3 percent from the fourth quarter of fiscal 2021. Comparable sales for the fourth quarter of fiscal 2022 decreased 0.3 percent, and comparable sales in the U.S. decreased 0.3 percent.
Net earnings for the fourth quarter of fiscal 2022 were $3.4 billion, or $3.30 per diluted share, compared with net earnings of $3.4 billion, or $3.21 per diluted share, in the same period of fiscal 2021. For the fourth quarter of fiscal 2022, diluted earnings per share increased 2.8 percent from the same period in the prior year.
Fiscal 2022
Sales for fiscal 2022 were $157.4 billion, an increase of $6.2 billion, or 4.1 percent, from fiscal 2021. Comparable sales for fiscal 2022 increased 3.1 percent, and comparable sales in the U.S. increased 2.9 percent.
Net earnings for fiscal 2022 were $17.1 billion, or $16.69 per diluted share, compared with net earnings of $16.4 billion, or $15.53 per diluted share in fiscal 2021. For fiscal year 2022, diluted earnings per share increased 7.5 percent versus last year.
"Fiscal 2022 was another record year for The Home Depot as our team continued to successfully execute in a challenging and dynamic environment," said Ted Decker, chair, president and CEO. "Our ability to deliver growth on top of the $40 billion of sales growth achieved over the prior two-year period, while navigating persistent inflation, ongoing global supply chain disruptions, and a tight labor market, is a testament to investments we have made in the business, as well as our associates' relentless focus on our customers. I would like to thank our associates and our many partners for their hard work and dedication to our customers."
Investment in Associates
The Home Depot's associates are a key differentiator and competitive advantage for the company. In alignment with its core values, the company will invest in wage, benefits, training, and career development for its associates. Beginning in the first quarter of fiscal 2023, The Home Depot will invest an additional approximately $1 billion in annualized compensation for frontline, hourly associates.
"The most important investment we can make is in our people. We believe this investment will position us favorably in the market, enabling us to attract and retain the level of talent needed to sustain the customer experience we strive to deliver," Decker said.
Dividend Declaration
The Company today announced that its board of directors approved a 10 percent increase in its quarterly dividend to $2.09 per share, which equates to an annual dividend of $8.36 per share.
The dividend is payable on March 23, 2023, to shareholders of record on the close of business on March 9, 2023. This is the 144th consecutive quarter the Company has paid a cash dividend.
Fiscal 2023 Guidance
The Company is providing the following guidance for fiscal 2023:
- Sales growth and comparable sales growth to be approximately flat compared to fiscal 2022
- Operating margin rate of approximately 14.5 percent, which reflects approximately $1 billion in additional annual compensation for frontline, hourly associates
- Tax rate of approximately 24.5 percent
- Diluted earnings-per-share-percent-decline to be mid-single digits
At the end of the fourth quarter, the company operated a total of 2,322 retail stores in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs approximately 475,000 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.
Source : The Home Depot
Image : Rob Wilson / shutterstock.com (180692453)
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