Home Depot Inc. · Earnings release · 8-K Exhibit 99

EX-99.1 2 hd_exhibit991x05042025.htm EX-99.1 Document Exhibit 99.1 The Home Depot Announces First Quarter Fiscal 2025 Results; Reaffirms Fiscal 2025 Guidance ATLANTA, May 20, 2025 -- The Home Depot ® , the world's largest home improvement retailer, today reported sales of $39.9 billion for the first quarter of fiscal 2025, an increase of 9.4% from the first quarter of fiscal 2024. T1Comparable sales for the first quarter of fiscal 2025 decreased 0.3%, and comparable sales in the U.S. increased 0.2%. For the first quarter of fiscal 2025, T2foreign exchange rates negatively impacted total company comparable sales by approximately 70 basis points. Net earnings for the first quarter of fiscal 2025 were $3.4 billion, or $3.45 per diluted share, compared with net earnings of $3.6 billion, or $3.63 per diluted share, in the same period of fiscal 2024.

Adjusted (1) diluted earnings per share for the first quarter of fiscal 2025 were $3.56, compared with adjusted diluted earnings per share of $3.67 in the same period of fiscal 2024. "Our first quarter results were in line with our expectations as T3we saw continued customer engagement across smaller projects and in our spring events," said Ted Decker, chair, president and CEO. "T4We feel great about our store readiness and product assortment as spring continues to break across the country, and I would like to thank our associates for their continued hard work and dedication." Fiscal 2025 Guidance The company reaffirms its guidance for fiscal 2025, a 52-week year compared to fiscal 2024, a 53-week year. • G1Total sales growth of approximately 2.8% • G2Comparable sales growth of approximately 1.0% for the comparable 52-week period • G3Approximately 13 new stores • G4T5Gross margin of approximately 33.4% • G5Operating margin of approximately 13.0% • G6Adjusted (1) operating margin of approximately 13.4% • G7Tax rate of approximately 24.5% • G8Net interest expense of approximately $2.2 billion • G9T6Diluted earnings-per-share to decline approximately 3% from $14.91 in fiscal 2024 • G10Adjusted (1) diluted earnings-per-share to decline approximately 2% from $15.24 in fiscal 2024 • G11Capital expenditures of approximately 2.5% of total sales (1)    The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP).

As used above and throughout this earnings release, adjusted operating income, adjusted operating margin, and adjusted diluted earnings per share are non-GAAP financial measures. Refer to the end of this release for an explanation of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures. 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 first quarter, the company operated a total of 2,350 retail stores and over 790 branches across all 50 states, the District of Columbia, Puerto Rico, the U.S.

Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs over 470,000 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. ### Cautionary Note Regarding Forward-Looking Statements Certain statements contained herein constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on currently available information and our current assumptions, expectations and projections about future events, and use words such as "may," "will," "could," "should," "would," "anticipate," "intend," "estimate," "project," "plan," "believe," "expect," "target," "prospects," "potential," "commit" and "forecast," or words of similar import or meaning or refer to future time periods.

Forward-looking statements may relate to, among other things, the demand for our products and services, including as a result of macroeconomic conditions and changing customer preferences and expectations; net sales growth; comparable sales; the effects of competition; our brand and reputation; implementation of interconnected retail, store, supply chain, technology innovation and other strategic initiatives, including with respect to real estate; 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 and trade credit; the impact of tariffs, trade policy changes or restrictions, or international trade disputes and efforts and ability to continue to diversify our supply chain; issues related to the payment methods we accept; demand for credit offerings including trade credit; management of relationships with our associates, jobseekers, suppliers and service providers; cost and availability of labor; costs of fuel and other energy sources; events that could disrupt our business, supply chain, technology infrastructure, or demand for our products and services, such as tariffs, trade policy changes or restrictions or international trade disputes, natural disasters, climate change, public health issues, cybersecurity events, labor disputes, geopolitical conflicts, military conflicts, or acts of war; our ability to maintain a safe and secure store environment; our ability to address expectations regarding sustainability and human capital management matters and meet related goals; continuation or suspension of share repurchases; net earnings performance; earnings per share; future dividends; 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 operating in international markets; 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 executive orders and other administrative or legislative actions, such as changes to tax laws and regulations; store openings and closures; guidance for fiscal 2025 and beyond; financial outlook; and the impact of acquired companies, including SRS, on our organization and the ability to recognize the anticipated benefits of any acquisitions.

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 February 2, 2025 and also as described from time to time in reports subsequently filed 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. Non-GAAP Financial Measures These statements are also supplemented with certain non-GAAP financial measures. When used in conjunction with our GAAP financial measures, we believe these supplemental non-GAAP financial measures will help management and investors to better understand and analyze our performance.

However, this supplemental information should not be considered in isolation or as a substitute for the related GAAP measures. Refer to the end of this release for an explanation and definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures. For more information, contact : 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 THE HOME DEPOT, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)   Three Months Ended in millions, except per share data May 4, 2025 April 28, 2024 % Change Net sales $ 39,856  $ 36,418  9.4  % Cost of sales 26,397  23,985  10.1  Gross profit 13,459  12,433  8.3  Operating expenses: Selling, general and administrative 7,530  6,667  12.9  Depreciation and amortization 796  687  15.9  Total operating expenses 8,326  7,354  13.2  Operating income 5,133  5,079  1.1  Interest and other (income) expense: Interest income and other, net (24) (57) (57.9) Interest expense 615  485  26.8  Interest and other, net 591  428  38.1  Earnings before provision for income taxes 4,542  4,651  (2.3) Provision for income taxes 1,109  1,051  5.5  Net earnings $ 3,433  $ 3,600  (4.6) % Basic weighted average common shares 992  989  0.3  % Basic earnings per share $ 3.46  $ 3.64  (4.9) Diluted weighted average common shares 994  992  0.2  % Diluted earnings per share $ 3.45  $ 3.63  (5.0) Three Months Ended Selected Sales Data (1) May 4, 2025 April 28, 2024 % Change Customer transactions (in millions) 394.8  386.8  2.1  % Average ticket $ 90.71  $ 90.68  —    ————— (1) Selected Sales Data does not include results for HD Supply or SRS.   THE HOME DEPOT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) in millions May 4, 2025 April 28, 2024 February 2, 2025 Assets Current assets: Cash and cash equivalents $ 1,369  $ 4,264  $ 1,659  Receivables, net 5,886  4,105  4,903  Merchandise inventories 25,763  22,416  23,451  Other current assets 1,511  1,837  1,670  Total current assets 34,529  32,622  31,683  Net property and equipment 26,780  25,997  26,702  Operating lease right-of-use assets 8,699  7,913  8,592  Goodwill 19,568  8,464  19,475  Intangible assets, net 8,888  3,555  8,983  Other assets 693  679  684  Total assets $ 99,157  $ 79,230  $ 96,119  Liabilities and Stockholders' Equity Current liabilities: Short-term debt $ 38  $ 8  $ 316  Accounts payable 14,696  12,563  11,938  Accrued salaries and related expenses 2,180  2,005  2,315  Current installments of long-term debt 4,885  763  4,582  Current operating lease liabilities 1,311  1,073  1,274  Other current liabilities 8,479  7,947  8,236  Total current liabilities 31,589  24,359  28,661  Long-term debt, excluding current installments 47,343  42,060  48,485  Long-term operating lease liabilities 7,714  7,107  7,633  Other long-term liabilities 4,556  3,884  4,700  Total liabilities 91,202  77,410  89,479  Total stockholders' equity 7,955  1,820  6,640  Total liabilities and stockholders' equity $ 99,157  $ 79,230  $ 96,119  THE HOME DEPOT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)   Three Months Ended in millions May 4, 2025 April 28, 2024 Cash Flows from Operating Activities: Net earnings $ 3,433  $ 3,600  Reconciliation of net earnings to net cash provided by operating activities: Depreciation and amortization, excluding amortization of intangible assets 855  785  Intangible asset amortization 139  52  Stock-based compensation expense 170  124  Changes in working capital (244) 842  Changes in deferred income taxes (3) 83  Other operating activities (25) 11  Net cash provided by operating activities 4,325  5,497  Cash Flows from Investing Activities: Capital expenditures (806) (847) Payments for businesses acquired, net (156) —  Other investing activities 31  17  Net cash used in investing activities (931) (830) Cash Flows from Financing Activities: (Repayments of) proceeds from short-term debt, net (278) 8  Proceeds from long-term debt, net of discounts 29  —  Repayments of long-term debt (1,106) (1,172) Repurchases of common stock —  (649) Proceeds from sales of common stock 11  62  Cash dividends (2,286) (2,229) Other financing activities (126) (166) Net cash used in financing activities (3,756) (4,146) Change in cash and cash equivalents (362) 521  Effect of exchange rate changes on cash and cash equivalents 72  (17) Cash and cash equivalents at beginning of period 1,659  3,760  Cash and cash equivalents at end of period $ 1,369  $ 4,264    NON-GAAP FINANCIAL MEASURES Adjusted operating income, adjusted operating margin (calculated as adjusted operating income divided by total net sales), and adjusted diluted earnings per share are presented as supplemental financial measures in the evaluation of our business that are not required by or presented in accordance with GAAP.

The Company excludes the impact of amortization expense from acquired intangible assets from adjusted operating income and adjusted operating margin, and the impact of amortization expense from acquired intangible assets, including the related tax effects, from adjusted diluted earnings per share. We do not adjust for the revenue that is generated in part from the use of our acquired intangible assets. Amortization expense, unlike the related revenue, is not affected by operations in any particular period unless an intangible asset becomes impaired, or the useful life of an intangible asset is revised. When used in conjunction with our GAAP results, we believe these non-GAAP measures provide investors with meaningful supplemental measures of our performance period to period, make it easier for investors to compare our underlying business performance to peers, and align to how management analyzes trends and evaluates performance internally.

The Company provides non-GAAP financial information on this basis to facilitate comparability when we report earnings results. These non-GAAP measures should not be a substitute for their comparable GAAP financial measures. Investors should rely primarily on our GAAP results and use non-GAAP financial measures only supplementally in making investment decisions. Our calculation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies and other companies may not define these non-GAAP financial measures in the same way, which may limit their usefulness as comparative measures. RECONCILIATION OF ADJUSTED OPERATING INCOME AND ADJUSTED OPERATING MARGIN Three Months Ended USD in millions May 4, 2025 April 28, 2024 % Change Operating income (GAAP) $ 5,133  $ 5,079  1.1  % Operating margin (1) 12.9  % 13.9  % Acquired intangible asset amortization (2) 139  52  Adjusted operating income (Non-GAAP) $ 5,272  $ 5,131  2.7  % Adjusted operating margin (Non-GAAP) (3) 13.2  % 14.1  %   ————— (1)    Operating margin is calculated as operating income divided by total net sales. (2)    Amounts include T7acquired intangible asset amortization of $87 million during the three months ended May 4, 2025 related to SRS which was acquired on June 18, 2024. (3)    Adjusted operating margin is calculated as adjusted operating income divided by total net sales.

Our adjusted operating margin guidance for fiscal 2025 excludes an expected approximately 40 basis point impact from acquired intangible asset amortization. RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE Three Months Ended per share amounts May 4, 2025 April 28, 2024 % Change Diluted earnings per share (GAAP) $ 3.45  $ 3.63  (5.0) % Impact of acquired intangible asset amortization 0.14  0.05  Income tax impact of non-GAAP adjustment (4) (0.03) (0.01) Adjusted diluted earnings per share (Non-GAAP) $ 3.56  $ 3.67  (3.0) %   ————— (4)    Calculated as the per share impact of acquired intangible asset amortization multiplied by the Company's effective tax rate for the period. Our adjusted diluted earnings per share guidance for fiscal 2025 excludes an expected after-tax impact of approximately $0.40 from acquired intangible asset amortization.