ATLANTA, Aug. 18, 2020 /PRNewswire/ -- The Home Depot®, the world's largest home improvement retailer, today reported sales of $38.1 billion for the second quarter of fiscal 2020, a 23.4 percent increase from the second quarter of fiscal 2019. Comparable sales for the second quarter of fiscal 2020 were positive 23.4 percent, and comparable sales in the U.S. were positive 25.0 percent.
Net earnings for the second quarter of fiscal 2020 were $4.3 billion, or $4.02 per diluted share, compared with net earnings of $3.5 billion, or $3.17 per diluted share, in the same period of fiscal 2019. For the second quarter of fiscal 2020, diluted earnings per share increased 26.8 percent from the same period in the prior year.
"The investments we have made across the business have significantly increased our agility, allowing us to respond quickly to changes while continuing to promote a safe operating environment. This enhanced our team's ability to work cross-functionally to better serve our customers and deliver record-breaking sales in the quarter," said Craig Menear, chairman, CEO and president. "We remain focused on continuing the momentum of our One Home Depot investment strategy that we believe will position us for continued growth over the long-term, while at the same time maintaining flexibility to navigate the demands of the current environment. Through it all, we will continue to lead with our values by doing the right thing and taking care of our people."
In the second quarter, the Company invested approximately $480 million in additional benefits for associates, including weekly bonuses for hourly associates in stores and distribution centers. Year-to-date, the Company has spent approximately $1.3 billion on enhanced pay and benefits in response to COVID-19. Additionally, the Company's first half performance resulted in a record payout for Success Sharing, the Company's profit-sharing program for hourly associates.
"I want to thank our associates for their continued focus on serving our customers and communities as we navigate these extraordinary circumstances together," said Menear.
The Company today announced that its board of directors declared a second quarter cash dividend of $1.50 per share. The dividend is payable on September 17, 2020, to shareholders of record on the close of business on September 3, 2020. This is the 134th consecutive quarter the Company has paid a cash dividend.
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 second quarter, the Company operated a total of 2,293 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 more than 400,000 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 impact on our business, operations and financial results of the COVID-19 pandemic (which, among other things, may affect many of the items listed below); the demand for our products and services; net sales growth; comparable sales; effects of competition; implementation of store, interconnected retail, supply chain and technology initiatives; inventory and in-stock positions; state of the economy; state of the housing and home improvement markets; state of the credit markets, including mortgages, home equity loans and consumer credit; impact of tariffs; issues related to the payment methods we accept; demand for credit offerings; management of relationships with our associates, suppliers and vendors; international trade disputes, natural disasters, public health issues (including pandemics and related quarantines, shelter-in-place and other governmental orders, and similar restrictions), and other business interruptions that could disrupt supply or delivery of, or demand for, the Company's products or services; continuation of share repurchase programs; net earnings performance; earnings per share; dividend targets; capital allocation and expenditures; liquidity; return on invested capital; expense leverage; stock-based compensation expense; commodity price inflation and deflation; the ability to issue debt on terms and at rates acceptable to us; the impact and expected outcome of investigations, inquiries, claims and litigation; the effect of accounting charges; the effect of adopting certain accounting standards; the impact of regulatory changes; store openings and closures; guidance for fiscal 2020 and beyond; financial outlook; and the integration of acquired companies into our organization and the ability to recognize the anticipated synergies and benefits of those 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 are currently unknown to us – as well as potentially inaccurate assumptions that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include, but are not limited to, those described in Item 1A, "Risk Factors," and elsewhere in our Annual Report on Form 10-K for our fiscal year ended February 2, 2020 and our Quarterly Report on Form 10-Q for the fiscal quarter ended May 3, 2020.
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 periodic filings with the Securities and Exchange Commission.
THE HOME DEPOT, INC.CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS(Unaudited)
Three Months Ended
Six Months Ended
in millions, except per share data
Cost of sales
Selling, general and administrative
Depreciation and amortization
Total operating expenses
Interest and other (income) expense:
Interest and investment income
Interest and other, net
Earnings before provision for income taxes
Provision for income taxes
Basic weighted average common shares
Basic earnings per share
Diluted weighted average common shares
Diluted earnings per share
Three Months Ended
Six Months Ended
Selected Sales Data (1)
Customer transactions (in millions)
Sales per retail square foot
(1) Selected Sales Data does not include results for the legacy Interline Brands business, now operating as a part of The Home Depot Pro.
THE HOME DEPOT, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)
Cash and cash equivalents
Other current assets
Total current assets
Net property and equipment
Operating lease right-of-use assets
Liabilities and Stockholders' Equity
Accrued salaries and related expenses
Current installments of long-term debt
Current operating lease liabilities
Other current liabilities
Total current liabilities
Long-term debt, excluding current installments
Long-term operating lease liabilities
Total stockholders' (deficit) equity
Total liabilities and stockholders' equity
THE HOME DEPOT, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)
Six Months Ended
Cash Flows from Operating Activities:
Reconciliation of net earnings to net cash provided by operating activities:
Depreciation and amortization
Stock-based compensation expense
Changes in working capital
Changes in deferred income taxes
Other operating activities
Net cash provided by operating activities
Cash Flows from Investing Activities:
Proceeds from sales of property and equipment
Other investing activities
Net cash used in investing activities
Cash Flows from Financing Activities:
Repayments of short-term debt, net
Proceeds from long-term debt, net of discounts and premiums
Repayments of long-term debt
Repurchases of common stock
Proceeds from sales of common stock
Other financing activities
Net cash used in financing activities
Change in cash and cash equivalents
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Note: Effective February 3, 2020, we reclassified cash flows relating to book overdrafts from financing to operating activities for all periods presented on the Condensed Consolidated Statement of Cash Flows. The amounts of these reclassifications were not material.
View original content to download multimedia:http://www.prnewswire.com/news-releases/the-home-depot-announces-second-quarter-results-declares-quarterly-dividend-of-1-50-per-share-301113545.html
SOURCE The Home Depot