Home Depot Announces Second Quarter Results; Updates its forecasts for the 2019 fiscal year

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ATLANTA, August 20, 2019 / PRNewswire / – Home Depot^®, the largest home improvement retailer in the world, today announced sales of $ 30.8 billion for the second quarter of fiscal 2019, an increase of 1.2% over second quarter of fiscal 2018. Comparable sales for the second quarter of fiscal 2019 showed a positive increase of 3.0%, while sales in the United States were positive by 3.1%. In the second quarter, the main difference between the company's sales growth and comparable sales performance reflects a change in the basis of the financial calendar due to 53 weeks of sales during the 2018 fiscal year.

Net income for the second quarter of fiscal 2019 was $ 3.5 billion$ 3.17 per diluted share, compared to a net income of $ 3.5 billionor $ 3.05 per diluted share, for the same period of fiscal 2018. For the second quarter of fiscal 2019, diluted earnings per share increased 3.9% over the same period period of the previous fiscal year.

"We were pleased with our results as we saw an acceleration in comp performance throughout the quarter," he said. Craig Menear, President, CEO and President. "I want to thank our people for their hard work and dedication to our customers."

"We are encouraged by the momentum of our strategic investments and believe that the current health of the US consumer and a stable residential environment continue to support our business." That being said, lumber prices have declined significantly over Last year, As a result, we are updating our sales forecasts today to take into account mainly the continued decline in the price of lumber, as well as the potential consequences for the US consumer resulting from tariffs. recently announced.We are reaffirming our earnings-per-action growth guidance for the 2019 fiscal year. "

Orientation for the 2019 financial year

The company has updated its guidance for the 2019 fiscal year, a 52-week year compared to the 2018 fiscal year, a 53-week year. The company expects to grow about 2.3% of its sales for the 2019 fiscal year and up about 4.0% for the comparable 52-week period. The company has confirmed its growth forecast for diluted earnings per share for the year and expects diluted earnings per share growth of approximately 3.1% over fiscal year 2018. $ 10.03.

Home Depot will hold a conference call today to 9:00 am ET to discuss the information contained in this press release and related issues. The conference call will be available in its entirety via webcast and replay at http://ir.homedepot.com/events-and-presentations.

At the end of the second quarter, the company operated a total of 2,291 retail stores in the 50 states, District of Colombia, Porto Rico, US Virgin Islands, Guam, 10 Canadian provinces and Mexico. The company employs over 400,000 people. Home Depot's shares trade on the New York Stock Exchange (NYSE: HD) and are included in the Dow Jones Industrial Average and the Standard & Poor's 500 Index.

Certain statements in this document constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act, 1995. They may include the demand for our products and services; net sales growth; comparable sales; effects of competition; the implementation of store initiatives, interconnected retail, supply chain and technology; stocks and positions in stock; state of the economy; state of housing and home renovation markets; the state of credit markets, including mortgages, net loans and consumer credit; impact of tariffs; problems with the payment methods we accept; request for credit offers; relationship management with our associates, suppliers and vendors; continuation of share buyback programs; net return on profits; earnings per share; dividend objectives; capital allocation and expenses; liquidity; return on invested capital; expenditure leverage; stock-based compensation expense; commodity price inflation and deflation; the ability to issue debt at terms and rates acceptable to us; the impact and expected results of investigations, investigations, claims and litigation; the effect of accounting expenses; the effect of the adoption of certain accounting standards; the impact of the 2017 Tax and Employment Reduction Act and other regulatory amendments; store openings and closures; indications for the 2019 and subsequent years; financial perspectives; and the integration of companies acquired in our organization and the ability to recognize the expected synergies and benefits from these acquisitions. Forward-looking statements are based on information currently available and our current assumptions, expectations and projections regarding 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, depend on the actions of third parties or are not known to us to date – as well as potentially inaccurate assumptions that could cause actual results to differ materially from our expectations and expectations. These risks and uncertainties include, among others, those described in Section 1A "Risk Factors" and elsewhere in our annual report on Form 10-K for our fiscal year ended February 3, 2019 and in our next quarterly reports on Form 10-Q.

Forward-looking statements speak only as of the date on which they are made, and we do not undertake to update them except as required by law. However, we advise you to review all other information we disclose on related matters in our periodic filings with the Securities and Exchange Commission.

Depot House, INC. CONSOLIDATED INCOME STATEMENT SUMMARY (Not verified)

	Three months have ended						Six months ended
*in millions, except per share data*	August 4th 2019		July 29 2018		% Change		August 4th 2019		July 29 2018		% Change
Net sales	$	30,839	$	30,463	1.2	%	$	57,220	$	55,410	3.3	%
Cost of sales	20,407		20,098		1.5		37,771		36,428		3.7
Gross profit	10,432		10,365		0.6		19,449		18,982		2.5
Operating expenses:
Selling, general and administrative expenses	5,044		5,004		0.8		9,984		9,783		2.1
Depreciation and amortization	492		460		7.0		972		917		6.0
Total operating expenses	5,536		5,464		1.3		10,956		10,700		2.4
Operating product	4,896		4,901		(0.1)		8,493		8,282		2.5
Interest and other expenses (products):
Interest and investment income	(19)		(26)		(26.9)		(34)		(48)		(29.2)
Interest charges	302		272		11.0		590		533		10.7
Interest and other, net	283		246		15.0		556		485		14.6
Profit before provision for income taxes	4,613		4,655		(0.9)		7.937		7,797		1.8
Provision for income taxes	1,134		1,149		(1.3)		1,945		1,887		3.1
Net profit	$	3,479	$	3,506	(0.8)	%	$	5,992	$	5,910	1.4	%

Weighted average number of ordinary shares	1,095		1,144		(4.3)	%	1,098		1,148		(4.4)	%
Basic earnings per share	$	3.18	$	3.06	3.9		$	5.46	$	5.15	6.0

Weighted average number of diluted common shares	1,099		1,149		(4.4)	%	1,103		1,154		(4.4)	%
Diluted earnings per share	$	3.17	$	3.05	3.9		$	5.43	$	5.12	6.1



	Three months have ended						Six months ended
Selected sales data ⁽¹⁾	August 4th 2019		July 29 2018		% Change		August 4th 2019		July 29 2018		% Change
Customer Transactions (in millions)	455.5		455.4		–	%	845.5		831.2		1.7	%
Average ticket	$	67.31	$	66.20	1.7		$	67.31	$	66.12	1.8
Sales per square foot	$	509.55	$	504.20	1.1		$	472.22	$	458.07	3.1
———-

(1)

Some sales data does not include the results of the legacy division of Interline Brands, now integrated with Home Depot Pro.

Depot House, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Not verified)

*in millions*	August 4th 2019		July 29 2018		February 3 2019
Assets
Cash and cash equivalents	$	2,547	$	3,490	$	1,778
Net claims	2,274		2,164		1,936
Stocks of goods	14,741		14,044		13,925
Other current assets	1,137		1,104		890
Total current assets	20,699		20,802		18,529
Net of property, plant and equipment	22387		21.909		22,375
Assets related to the right of use of operating lease	5,789		–		–
Good will	2,254		2,251		2,252
other assets	881		1 270		847
Total assets	$	52,010	$	46.232	$	44,003

Liabilities and equity
Short term debt	$	–	$	–	$	1,339
Accounts payable	9,494		9,407		7,755
Salaries and related expenses	1,478		1,535		1,506
Current payments of long-term debt	1,315		2,203		1,056
Current lease liabilities outstanding	831		–		–
Other current liabilities	5,680		5,281		5,060
Total current liabilities	18,798		18,426		16,716
Long-term debt, excluding current maturities	27,064		23,295		26,807
Liabilities under operating leases	5,263		–		–
Other liabilities	2,045		2,502		2,358
Total responsibilities	53,170		44,223		45,881
Total equity (deficit)	(1,160)		2,009		(1,878)
Total liabilities and equity	$	52,010	$	46.232	$	44,003

Depot House, INC. SUMMARY CONSOLIDATED STATEMENTS OF CASH FLOWS (Not verified)

	Six months ended
*in millions*	August 4th 2019		July 29 2018
Cash flow from operating activities:
Net profit	$	5,992	$	5,910
Reconciliation of net income and net cash generated by operating activities:
Depreciation and amortization	1,107		1,062
Stock-based compensation charge	139		144
Changes in working capital	1,122		910
Changes in deferred taxes	58		(120)
Other activities of exploitation	79		1
Net cash provided by operating activities	8,497		7,907

Cash flow from investing activities:
Capital expenditures, net of non-cash capital expenditures	(1,246)		(1,091)
Proceeds from the sale of property, plant and equipment	11		16
Other investment activities	(14)		–
Net cash used in investing activities	(1,249)		(1.075)

Cash flow from financing activities:
Repayment of short-term, net debt	(1.339)		(1.559)
Product of long-term debt, net of discounts and premiums	1,404		–
Repayment of long-term debt	(1,030)		(28)
Redemption of ordinary shares	(2.619)		(3,121)
Proceeds from the sale of ordinary shares	157		125
Cash dividends	(2,991)		(2.373)
Other financing activities	(70)		142
Net cash used in financing activities	(6,488)		(6,814)
Change in cash and cash equivalents	760		18
Effect of foreign exchange rate changes on cash and cash equivalents	9		(123)
Cash and cash equivalents at the beginning of the period	1,778		3,595
Cash and cash equivalents at the end of the period	$	2,547	$	3,490

SOURCE Home Depot

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