"We have significant growth opportunities in front of us and we are very happy with the operational execution in our core business" - Ted Decker, CEO.
— Ted Decker
03Detailed Report
HD
The Home Depot Inc
Period
Q1 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 21, 2026
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Executive Summary
The Home Depot Inc reported its Q1 2024 results, showcasing a revenue of $36.4 billion, which represents a 2.3% decline compared to the prior year. Comp sales reflected a similar trend with a decrease of 2.8%. Despite the challenging environment, particularly due to a delayed start to the spring season and softness in discretionary spending on larger projects, management expressed confidence in the company’s operational execution and investments in store readiness and product assortment. CEO Ted Decker highlighted a robust focus on gaining market share, particularly within the Professional (Pro) contractor segment, emphasizing the strategic intention to develop a comprehensive Pro ecosystem. The overall narrative pivots around measured optimism despite cautious market conditions, supported by ongoing innovations and targeted market strategies, especially as weather conditions improve and peak selling seasons approach.
Key Performance Indicators
Revenue
Decreasing
36.42B
QoQ: 4.69% | YoY: -3.43%
Gross Profit
Decreasing
12.43B
34.14% margin
QoQ: 8.04% | YoY: -2.39%
Operating Income
Decreasing
5.08B
QoQ: 22.59% | YoY: -6.05%
Net Income
Decreasing
3.60B
QoQ: 28.53% | YoY: -5.51%
EPS
Decreasing
3.64
QoQ: 28.62% | YoY: -4.96%
Revenue Trend
Margin Analysis
Financial Highlights
### Key Financial Metrics
- Revenue: $36.4 billion
- Year-over-Year (YoY) Change: -2.3%
- Quarter-over-Quarter (QoQ) Change: +4.7%
- Net Income: $3.6 billion
- YoY Change: -5.5%
- Diluted EPS: $3.63
- YoY Change: -5%
- Gross Margin: 34.1%
- Increased by 45 basis points YoY
- Operating Margin: 13.9%
- Decreased by 100 basis points YoY
- Cash Flow from Operations: $5.5 billion
- Inventory: Decreased to $22.4 billion, down 12% YoY
- Number of Stores: 2,337 as of end of Q1 2024, with two new stores opened during the quarter.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
36.42B
-3.43%
4.69%
Gross Profit
12.43B
-2.39%
8.04%
Operating Income
5.08B
-6.05%
22.59%
Net Income
3.60B
-5.51%
28.53%
EPS
3.64
-4.96%
28.62%
Key Financial Ratios
Gross Profit Margin
Fair
34.10%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
13.90%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
9.89%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Fair
4.54%
Return on assets is acceptable but below top-tier companies
Return on Equity
Weak
1.98%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.34
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
28.03
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Fair Value
23.13x
P/E ratio in line with market averages
Price to Book
High Premium
183.02x
Very high premium suggests asset-light business model or lofty expectations
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