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Jul 31, 2022

Home Depot Q2 2022 Earnings Report

Home Depot achieved record quarterly sales and earnings, driven by continued demand for home improvement projects.

Key Takeaways

Home Depot reported a 6.5% increase in sales to $43.8 billion and net earnings of $5.2 billion, or $5.05 per diluted share, for the second quarter of fiscal 2022. The company reaffirmed its fiscal year 2022 guidance.

Sales increased by 6.5% compared to the second quarter of fiscal 2021.

Comparable sales grew by 5.8% overall and 5.4% in the U.S.

Net earnings reached $5.2 billion, or $5.05 per diluted share.

The company reaffirmed its fiscal year 2022 sales and earnings guidance.

Total Revenue
$43.8B
Previous year: $41.1B
+6.5%
EPS
$5.05
Previous year: $4.53
+11.5%
Comparable Sales Growth
5.8%
Previous year: 4.5%
+28.9%
Customer Transactions
467.4M
Previous year: 481.7M
-3.0%
Average Ticket
$90
Previous year: $82.5
+9.1%
Gross Profit
$14.5B
Previous year: $13.7B
+6.0%
Cash and Equivalents
$1.26B
Previous year: $4.57B
-72.4%
Total Assets
$75.8B
Previous year: $70.8B
+7.1%

Home Depot

Home Depot

Forward Guidance

The Company reaffirmed fiscal 2022 guidance of: Total sales growth and comparable sales growth of approximately 3.0 percent; Operating margin of approximately 15.4 percent; Net interest expense of approximately $1.6 billion; Tax rate of approximately 24.6 percent; Diluted earnings-per-share-percent-growth to be mid-single digits

Positive Outlook

  • Total sales growth of approximately 3.0 percent
  • Comparable sales growth of approximately 3.0 percent
  • Operating margin of approximately 15.4 percent
  • Diluted earnings-per-share-percent-growth to be mid-single digits

Challenges Ahead

  • Net interest expense of approximately $1.6 billion
  • Tax rate of approximately 24.6 percent