The Home Depot Announces Third Quarter Results


The Home Depot Announces Third Quarter ResultsATLANTA, November 16, 2021 -- The Home Depot , the world's largest home improvementretailer, today reported sales of 36.8 billion for the third quarter of fiscal 2021, an increase of 3.3 billion, or 9.8 percent from the third quarter of fiscal 2020. Comparable sales for the thirdquarter of fiscal 2021 increased 6.1 percent, and comparable sales in the U.S. increased 5.5percent.Net earnings for the third quarter of fiscal 2021 were 4.1 billion, or 3.92 per diluted share,compared with net earnings of 3.4 billion, or 3.18 per diluted share, in the same period offiscal 2020. For the third quarter of fiscal 2021, diluted earnings per share increased 23.3percent from the same period in the prior year.“As evidenced by our strong performance in the quarter, our team continues to do anoutstanding job of operating with flexibility and agility,” said Craig Menear, chairman andCEO. “Ultimately, this is what has allowed us to respond to the elevated home improvementdemand that has persisted. I would like to extend my sincere appreciation to our team, aswell as our supplier, supply chain, and transportation partners, as we continue to navigatethis dynamic environment together.”The Home Depot will conduct a conference call today at 9 a.m. ET to discuss informationincluded in this news release and related matters. The conference call will be available in itsentirety through a webcast and replay at the end of the third quarter, the Company operated a total of 2,317 retail stores in all 50states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadianprovinces and Mexico, including 14 stores from a small acquisition completed during thesecond quarter of fiscal 2021. The Company employs approximately 500,000 associates. TheHome Depot's stock is traded on the New York Stock Exchange (NYSE: HD) and is includedin the Dow Jones industrial average and Standard & Poor's 500 index.###Certain statements contained herein constitute “forward-looking statements” as defined in the Private SecuritiesLitigation Reform Act of 1995. Forward-looking statements may relate to, among other things, the impact of theCOVID-19 pandemic and the related recovery on our business, operations and financial results (which, amongother things, may affect many of the items listed below); the demand for our products and services; net salesgrowth; comparable sales; effects of competition; our brand and reputation; implementation of store,interconnected retail, supply chain and technology initiatives; inventory and in-stock positions; state of theeconomy; 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, potential associates, suppliers andservice providers; international trade disputes, natural disasters, public health issues (including pandemics andquarantines, related shut-downs and other governmental orders, and similar restrictions, as well as subsequentre-openings), and other business interruptions that could disrupt supply or delivery of, or demand for, theCompany’s products or services; 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; stock-based compensation expense; commodity or other price inflation and deflation; the abilityto 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 effect of accounting charges; the effect ofadopting certain accounting standards; the impact of regulatory changes, including changes to tax laws andregulations; store openings and closures; guidance for fiscal 2021 and beyond; financial outlook; and the impactof acquired companies, including HD Supply Holdings, Inc., on our organization and the ability to recognize theanticipated benefits of those acquisitions. Forward-looking statements are based on currently availableinformation and our current assumptions, expectations and projections about future events. You should not relyon our forward-looking statements. These statements are not guarantees of future performance and are subjectto future events, risks and uncertainties – many of which are beyond our control, dependent on the actions of thirdparties, or are currently unknown to us – as well as potentially inaccurate assumptions that could cause actualresults to differ materially from our expectations and projections. These risks and uncertainties include, but arenot limited to, those described in Item 1A, “Risk Factors,” and elsewhere in our Annual Report on Form 10-K forour fiscal year ended January 31, 2021 and in our subsequent Quarterly Reports on Form 10-Q. There also maybe other factors we cannot anticipate that are not described herein, generally because we do not currently perceivethem 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 thesestatements other than as required by law. You are advised, however, to review any further disclosures we makeon related subjects in our periodic filings with the Securities and Exchange Commission and in our other publicstatements.For more information, contact:Financial CommunityIsabel JanciVice President of Investor Relations and Treasurer770-384-2666isabel janci@homedepot.comNews MediaMargaret SmithSenior Manager of Corporate Communications470-564-0284margaret w

THE HOME DEPOT, INC.CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS(Unaudited)Three Months Endedin millions, except per share dataNet salesCost of salesGross profitOperating expenses:Selling, general and administrativeDepreciation and amortizationTotal operating expensesOperating incomeNine Months EndedOctober 31,2021November 1,2020 36,82024,25712,563 )1,00698017,235(37)1,01097313,222(29.7)Interest and other (income) expense:Interest and investment income(15)Interest expense341326Interest and other, net5,469Earnings before provision for income taxesProvision for income taxes1,340 4,129Net earningsBasic weighted average common sharesBasic earnings per share1,0493.94Diluted weighted average common shares1,053Diluted earnings per share 3.92 % Change9.8 % 115,4389.976,46838,9709.7Customer transactions (in millions)Average ticketSales per retail square footNovember 1,2020 99,84965,82734,022% Change15.6 %16.214.51,091 3,4320.3(0.9)20.922.84,154 13,08120.3 %3,213 10,009(0.4)0.730.429.330.7 % 1,0733.20(2.2)%1,05923.1 12.35 1,0749.32(1.4)%32.5 1,0783.18(2.3)%1,06323.3 12.31 1,0789.28(1.4)%32.7Three Months EndedSelected Sales Data (1)October 31,2021October 31,2021November 1,2020428.2 82.38 587.28453.2 72.98 552.85Nine Months Ended% ChangeOctober 31,2021(5.5)% 1,357.212.9 82.436.2 615.98November 1,20201,339.5 73.90 549.26—————(1) Selected Sales Data does not include results for the legacy Interline Brands business or results for HD Supply Holdings, Inc.% Change1.3 %11.512.1

THE HOME DEPOT, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)October 31,2021in millionsAssetsCurrent assets:Cash and cash equivalentsReceivables, netMerchandise inventoriesOther current assets Total current assetsNet property and equipmentOperating lease right-of-use assetsGoodwillOther assetsTotal assetsLiabilities and Stockholders' EquityCurrent liabilities:Accounts payableAccrued salaries and related expensesCurrent installments of long-term debtCurrent operating lease liabilitiesOther current liabilities Total current liabilitiesLong-term debt, excluding current installmentsLong-term operating lease liabilitiesOther long-term liabilitiesTotal liabilitiesTotal stockholders’ equityTotal liabilities and stockholders’ equity 71,9961,03573,031November 1,2020 5,3841,53566,919January 31,2021 ,2823,29970,581

THE HOME DEPOT, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)Nine Months EndedOctober 31,2021in millionsCash Flows from Operating Activities:Net earningsReconciliation of net earnings to net cash provided by operating activities:Depreciation and amortizationStock-based compensation expenseChanges in working capitalChanges in deferred income taxesOther operating activities Net cash provided by operating activitiesCash Flows from Investing Activities:Capital expendituresPayments for businesses acquired, netOther investing activitiesNet cash used in investing activitiesCash Flows from Financing Activities:Repayments of short-term debt, netProceeds from long-term debt, net of discounts and premiumsRepayments of long-term debtRepurchases of common stockProceeds from sales of common stockCash dividendsOther financing activitiesNet cash used in financing activitiesChange in cash and cash equivalentsEffect of exchange rate changes on cash and cash equivalentsCash and cash equivalents at beginning of periodCash and cash equivalents at end of period 13,081November 1,2020 39277,8955,067(20)2,13314,652

The Home Depot Announces Third Quarter Results ATLANTA, November 16, 2021 -- The Home Depot, the world's largest home improvement retailer,oday t reported sales of 36.8 billion for the third quarter of fiscal 2021, an increase of 3.3 billion, 9.8 orpercent from the third quarter of fiscal 2020. Comparable saleshe forthird t