Home Depot Beats Street
February 23, 2021
The Home Depot reported fourth quarter and
fiscal 2020 results. Sales for the fourth quarter of fiscal 2020
were $32.3 billion, an increase of $6.5 billion, or 25.1 percent
from the fourth quarter of fiscal 2019. Comparable sales for the
fourth quarter of fiscal 2020 increased 24.5 percent, and comparable
sales in the U.S. increased 25.0 percent.
Net earnings for the fourth quarter of fiscal 2020 were $2.9
billion, or $2.65 per diluted share, compared with net earnings of
$2.5 billion, or $2.28 per diluted share, in the same period of
fiscal 2019. For the fourth quarter of fiscal 2020, diluted earnings
per share increased 16.2 percent from the same period in the prior
year. Net earnings for the fourth quarter and the fiscal year were
negatively impacted by non-recurring, pre-tax expenses related to
the completion of the acquisition of HD Supply Holdings, Inc. on
December 24, 2020, which totaled approximately $110 million, or
$0.09 per diluted share.
Wall Street was only looking for
earnings per share of $2.62 expected and revenue at $30.73 billion.
Fiscal 2020
Sales for fiscal 2020 were $132.1 billion, an increase of $21.9
billion, or 19.9 percent, from fiscal 2019. Comparable sales for
fiscal 2020 increased 19.7 percent, and comparable sales in the U.S.
increased 20.6 percent.
Net earnings for fiscal 2020 were $12.9 billion, or $11.94 per
diluted share, compared with net earnings of $11.2 billion, or
$10.25 per diluted share in fiscal 2019. For fiscal year 2020,
diluted earnings per share increased 16.5 percent versus the prior
year.
"The team demonstrated ongoing flexibility to operate effectively in
a very challenging environment and deliver record-breaking sales and
earnings. Our ability to grow the business by over $21 billion in
fiscal 2020 is a testament to both the investments we have made in
the business as well as our associates' unwavering commitment to our
customers," said Craig Menear, chairman and CEO. "We continue to
lean into these investments because we believe they are critical in
enabling market share growth in any economic environment. I am proud
of the many ways our associates lived our values by serving our
customers, communities and each other during these unquestionably
challenging times, and I would like to thank them and our supplier
partners for their extraordinary efforts."
Fiscal 2021
Given the uncertainty related to the duration of the COVID-19
pandemic and its influence on the consumer, the Company believes it
is limited in its ability to forecast demand for fiscal 2021. As a
result, the Company is not providing guidance for fiscal 2021.
"We were pleased with our record financial performance in fiscal
2020. As we look ahead to fiscal 2021, while we are not able to
predict how consumer spending will evolve, if the demand environment
during the back half of fiscal 2020 were to persist through fiscal
2021, it would imply flat to slightly positive comparable sales
growth and operating margin of at least 14 percent," said Richard
McPhail, executive vice president and CFO.
Dividend Declaration
The Company today announced that its board of directors approved an
increase in its quarterly dividend by 10.0 percent to $1.65 per
share, which equates to an annual dividend of $6.60.
The dividend is payable on March 25, 2021, to shareholders of record
on the close of business on March 11, 2021. This is the 136th
consecutive quarter the Company has paid a cash dividend.
