# EDGAR Filing Document

**Accession Number:** 0000354950
**File Stem:** 0000354950-23-000025
**Filing Date:** 2023-2
**Character Count:** 21071
**Document Hash:** 21982735420743ee4f987d92c0e807a3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000354950-23-000025.hdr.sgml**: 20230221

**ACCESSION NUMBER**: 0000354950-23-000025

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230221

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230221

**DATE AS OF CHANGE**: 20230221

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HOME DEPOT, INC.
- **CENTRAL INDEX KEY:** 0000354950
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-LUMBER & OTHER BUILDING MATERIALS DEALERS [5211]
- **IRS NUMBER:** 953261426
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0129

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-08207
- **FILM NUMBER:** 23645093

**BUSINESS ADDRESS:**
- **STREET 1:** 2455 PACES FERRY ROAD
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30339-4024
- **BUSINESS PHONE:** 770-433-8211

**MAIL ADDRESS:**
- **STREET 1:** 2455 PACES FERRY ROAD
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30339-4024

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** HOME DEPOT INC
- **DATE OF NAME CHANGE:** 19920703

?xml version="1.0" ? hd-20230221

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**__________________**

**FORM 8-K** 

**__________________**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

**Date of Report (Date of Earliest Event Reported): February 21, 2023** 

**__________________**

**THE HOME DEPOT, INC.** 

**(Exact Name of Registrant as Specified in Charter)**

**__________________**

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| | | |
|:---|:---|:---|
| **Delaware** | **1-8207** | **95-3261426** |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission<br>File Number)** | **(IRS Employer<br>Identification No.)** |

---

**2455 Paces Ferry Road, Atlanta, Georgia 30339** 

**(Address of Principal Executive Offices) (Zip Code)**

**(770) 433-8211** 

**(Registrant's Telephone Number, Including Area Code)**

**Not Applicable**

**(Former Name or Former Address, if Changed Since Last Report)**

**__________________**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

---

| | | |
|:---|:---|:---|
| **Securities registered pursuant to Section 12(b) of the Act:** | **Securities registered pursuant to Section 12(b) of the Act:** | **Securities registered pursuant to Section 12(b) of the Act:** |
| **Title of each class** | **Trading symbol** | **Name of each exchange on which registered** |
| Common Stock, $0.05 Par Value Per Share | HD | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 2.02. &nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On February 21, 2023, The Home Depot, Inc. (the "Company") issued a press release, attached as Exhibit 99.1 and incorporated herein by reference, announcing the Company's financial results for the fiscal quarter ended and fiscal year ended January 29, 2023.

The information contained in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of Section 18. Furthermore, the information contained in this Item 2.02 and Exhibit 99.1 shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.

**Item 9.01. &nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

---

| | |
|:---|:---|
| **<u>Exhibit</u>** | **<u>Description</u>** |
| <u>[99.1](hd_ex991x1292023xactive.htm)</u> | <u>[Press Release of The Home Depot, Inc.](hd_ex991x1292023xactive.htm)</u> |
| 104 | The cover page of this Current Report on Form 8-K formatted in Inline XBRL (included as Exhibit 101). |

---

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| THE HOME DEPOT, INC. | THE HOME DEPOT, INC. |
| By: | /s/ Richard V. McPhail |
| Name: | Richard V. McPhail |
| Title: | Executive Vice President and Chief Financial Officer |

---

Date: February 20, 2023

## Exhibit 99.1

**Exhibit 99.1**

![hdlogoa02a01a01a01a01a21a.jpg](hdlogoa02a01a01a01a01a21a.jpg)

**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**

**ATLANTA, Feb. 21, 2023 --** The Home Depot<sup>®</sup>, 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 144<sup>th</sup> consecutive quarter the Company has paid a cash dividend.

**Fiscal 2023 Guidance**

The Company is providing the following guidance for fiscal 2023:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sales growth and comparable sales growth to be approximately flat compared to fiscal 2022

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating margin rate of approximately 14.5 percent, which reflects approximately $1 billion in additional annual compensation for frontline, hourly associates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Tax rate of approximately 24.5 percent

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Diluted earnings-per-share-percent-decline to be mid-single digits

The Home Depot will conduct a conference call today at 9 a.m. ET to discuss information included in this news release and related matters. The conference call will be available in its entirety through a webcast and replay at ir.homedepot.com/events-and-presentations.

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.

###

*Certain statements contained herein constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements may relate to, among other things, the demand for our products and services; net sales growth; comparable sales; the effects of competition; our brand and reputation; implementation of store, interconnected retail, supply chain and technology initiatives; inventory and in-stock positions; the state of the economy; the state of the housing and home improvement markets; the state of the credit markets, including mortgages, home equity loans, and consumer credit; the impact of tariffs; issues related to the payment methods we accept; demand for credit offerings; management of relationships with our associates, potential associates, suppliers and service providers; cost and availability of labor; costs of fuel and other energy sources; international trade disputes, natural disasters, climate change, public health issues (including the continuing impacts of the COVID-19 pandemic and the related recovery), cybersecurity events, military conflicts or acts of war, supply chain disruptions, and other business interruptions that could compromise data privacy or disrupt operation of our stores, distribution centers and other facilities, our ability to operate or access communications, financial or banking systems, or supply or delivery of, or demand for, our products or services; our ability to address expectations regarding environmental, social and governance (ESG) matters and meet ESG goals; continuation or suspension of share repurchases; net earnings performance; earnings per share; dividend targets; capital allocation* 

------

*and expenditures; liquidity; return on invested capital; expense leverage; changes in interest rates; changes in foreign currency exchange rates; commodity or other price inflation and deflation; our ability to issue debt on terms and at rates acceptable to us; the impact and expected outcome of investigations, inquiries, claims and litigation, including compliance with related settlements; the challenges of international operations; the adequacy of insurance coverage; the effect of accounting charges; the effect of adopting certain accounting standards; the impact of legal and regulatory changes, including changes to tax laws and regulations; store openings and closures; guidance for fiscal 2023 and beyond; financial outlook; and the impact of acquired companies on our organization and the ability to recognize the anticipated benefits of any acquisitions. Forward-looking statements are based on currently available information and our current assumptions, expectations and projections about future events. You should not rely on our forward-looking statements. These statements are not guarantees of future performance and are subject to future events, risks and uncertainties – many of which are beyond our control, dependent on the actions of third parties, or currently unknown to us – as well as potentially inaccurate assumptions that could cause actual results to differ materially from our historical experience and our expectations and projections. These risks and uncertainties include, but are not limited to, those described in Part I, Item 1A, "Risk Factors," and elsewhere in our Annual Report on Form 10-K for our fiscal year ended January 30, 2022 and also as may be described from time to time in future reports we file with the Securities and Exchange Commission. There also may be other factors that we cannot anticipate or that are not described herein, generally because we do not currently perceive them to be material. Such factors could cause results to differ materially from our expectations.*

*Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our filings with the Securities and Exchange Commission and in our other public statements.*

**<u>For more information, contact</u>**<u>:</u>

---

| | |
|:---|:---|
| *Financial Community* | *News Media* |
| Isabel Janci | Sara Gorman |
| Vice President of Investor Relations and Treasurer | Senior Director of Corporate Communications |
| 770-384-2666 | 770-384-2852 |
| isabel_janci@homedepot.com | sara_gorman@homedepot.com |

---

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**THE HOME DEPOT, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS**

**(Unaudited)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | | **Fiscal Year Ended** | **Fiscal Year Ended** | |
| ***in millions, except per share data*** | **January 29,<br>2023** | **January 30,<br>2022** |<br>**% Change** | **January 29,<br>2023** | **January 30,<br>2022** |<br>**% Change** |
| Net sales | $35831 | $35719 | 0.3% | $157403 | $151157 | 4.1% |
| Cost of sales | 23905 | 23857 | 0.2 | 104625 | 100325 | 4.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 11926 | 11862 | 0.5 | 52778 | 50832 | 3.8 |
| Operating expenses: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 6549 | 6431 | 1.8 | 26284 | 25406 | 3.5 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 625 | 606 | 3.1 | 2455 | 2386 | 2.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 7174 | 7037 | 1.9 | 28739 | 27792 | 3.4 |
| Operating income | 4752 | 4825 | (1.5) | 24039 | 23040 | 4.3 |
| Interest and other (income) expense: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income and other, net | (43) | (18) | N/M | (55) | (44) | 25.0 |
| &nbsp;&nbsp;&nbsp;Interest expense | 451 | 341 | 32.3 | 1617 | 1347 | 20.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest and other, net | 408 | 323 | 26.3 | 1562 | 1303 | 19.9 |
| Earnings before provision for income taxes | 4344 | 4502 | (3.5) | 22477 | 21737 | 3.4 |
| Provision for income taxes | 982 | 1150 | (14.6) | 5372 | 5304 | 1.3 |
| Net earnings | $3362 | $3352 | 0.3% | $17105 | $16433 | 4.1% |
| Basic weighted average common shares | 1015 | 1038 | (2.2)% | 1022 | 1054 | (3.0)% |
| Basic earnings per share | $3.31 | $3.23 | 2.5 | $16.74 | $15.59 | 7.4 |
| Diluted weighted average common shares | 1018 | 1043 | (2.4)% | 1025 | 1058 | (3.1)% |
| Diluted earnings per share | $3.30 | $3.21 | 2.8 | $16.69 | $15.53 | 7.5 |
|  | **Three Months Ended** | **Three Months Ended** |  | **Fiscal Year Ended** | **Fiscal Year Ended** |  |
| **<u>Selected Sales Data</u>** <sup>(1)</sup> | **January 29,<br>2023** | **January 30,<br>2022** | **% Change** | **January 29,<br>2023** | **January 30,<br>2022** | **% Change** |
| Customer transactions (in millions) | 378.5 | 402.5 | (6.0)% | 1666.4 | 1759.7 | (5.3)% |
| Average ticket | $90.05 | $85.11 | 5.8 | $90.36 | $83.04 | 8.8 |
| Sales per retail square foot | $571.15 | $571.79 | (0.1) | $627.17 | $604.74 | 3.7 |

---

—————

*(1)Selected Sales Data does not include results for HD Supply.*

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**THE HOME DEPOT, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
| ***in millions*** | **January 29,<br>2023** | **January 30,<br>2022** |
| **Assets** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $2757 | $2343 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables, net | 3317 | 3426 |
| &nbsp;&nbsp;&nbsp;&nbsp;Merchandise inventories | 24886 | 22068 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 1511 | 1218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 32471 | 29055 |
| Net property and equipment | 25631 | 25199 |
| Operating lease right-of-use assets | 6941 | 5968 |
| Goodwill | 7444 | 7449 |
| Other assets | 3958 | 4205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $76445 | $71876 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term debt | $— | $1035 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 11443 | 13462 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued salaries and related expenses | 1991 | 2426 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current installments of long-term debt | 1231 | 2447 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current operating lease liabilities | 945 | 830 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 7500 | 8493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 23110 | 28693 |
| Long-term debt, excluding current installments | 41962 | 36604 |
| Long-term operating lease liabilities | 6226 | 5353 |
| Other long-term liabilities | 3585 | 2922 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 74883 | 73572 |
| Total stockholders' equity (deficit) | 1562 | (1696) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $76445 | $71876 |

---

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**THE HOME DEPOT, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

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| | | |
|:---|:---|:---|
| | **Fiscal Year Ended** | **Fiscal Year Ended** |
| ***in millions*** | **January 29,<br>2023** | **January 30,<br>2022** |
| **Cash Flows from Operating Activities:** | | |
| Net earnings | $17105 | $16433 |
| Reconciliation of net earnings to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 2975 | 2862 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation expense | 366 | 399 |
| &nbsp;&nbsp;&nbsp;Changes in working capital | (6240) | (3043) |
| &nbsp;&nbsp;&nbsp;Changes in deferred income taxes | 138 | (276) |
| &nbsp;&nbsp;&nbsp;Other operating activities | 271 | 196 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 14615 | 16571 |
| **Cash Flows from Investing Activities:** |  |  |
| Capital expenditures | (3119) | (2566) |
| Payments for businesses acquired, net |  | (421) |
| Other investing activities | (21) | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (3140) | (2969) |
| **Cash Flows from Financing Activities:** |  |  |
| (Repayments of) proceeds from short-term debt, net | (1035) | 1035 |
| Proceeds from long-term debt, net of discounts | 6942 | 2979 |
| Repayments of long-term debt | (2491) | (1532) |
| Repurchases of common stock | (6696) | (14809) |
| Proceeds from sales of common stock | 264 | 337 |
| Cash dividends | (7789) | (6985) |
| Other financing activities | (188) | (145) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (10993) | (19120) |
| Change in cash and cash equivalents | 482 | (5518) |
| Effect of exchange rate changes on cash and cash equivalents | (68) | (34) |
| Cash and cash equivalents at beginning of year | 2343 | 7895 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents at end of year | $2757 | $2343 |

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