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05/17/2022

Modest Q1 gains propel HD to another record

CEO Decker describes a ‘strong start’ amid single-digit gains.

The Home Depot reported a record first quarter, built on top of a 1.7% gain in U.S. comp store sales, and a 2.1 percent gain in net earnings.

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comp sales HD
After peaking in last year's Q1, U.S. comps have returned to earth.

Total sales for the world’s largest home improvement retailer for the quarter ended May 1 reached $38,908 million, up 3.8% from $37,500 million in the same quarter last year.

While the domestic comps figure for the first quarter is dramatically below the 29.9 percent recorded in the first quarter of 2021, CEO Ted Decker pointed to a “strong start” to the year and a new record: highest first-quarter sales in the history of the company.

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Depot Grill
The company expects to grow sales about 3.0 percent this year.

"The solid performance in the quarter is even more impressive as we were comparing against last year's historic growth and faced a slower start to spring this year,” Decker said. “These results are a direct reflection of our associates' continued ability to effectively navigate a challenging and dynamic environment.

On the strength of the recent numbers, the Home Depot also raised its guidance for the rest of the year. Here are the specifics:

• 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

The company ended the quarter with 2,316 retail stores, down 1 store from three months ago.

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Bottom line: Net earnings increased to $4.231 billion, up 2.1 percent from last year’s first quarter.

What the CEO said: “The solid performance in the quarter is even more impressive as we were comparing against last year's historic growth and faced a slower start to spring this year.”

More information: The company’s earnings call is available here.

Click on the image above to expand the Q1 infographic.