"Our performance during the third quarter exceeded our expectations as we saw better engagement in some seasonal leasing categories as a result of more favorable weather throughout the quarter."
— Billy Bastek
03Detailed Report
HD
The Home Depot Inc
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 21, 2026
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Executive Summary
In its third quarter of 2024, The Home Depot Inc (Ticker: HD) reported a revenue of $40.2 billion, marking a significant year-over-year increase of 6.6%, driven mainly by favorable weather conditions and hurricane-related sales. However, comparable sales were down 1.3%, reflecting challenges in larger remodeling projects amidst rising interest rates and macroeconomic uncertainties. CEO Ted Decker noted that while performance exceeded expectations in Q3, particularly in seasonal categories, significant pressure remained on discretionary spending due to unfavorable market conditions. Updating their guidance for fiscal 2024, the company now expects sales growth of approximately 4% and a slight decline of 1% in diluted earnings per share.
Key Performance Indicators
Revenue
Increasing
40.22B
QoQ: -6.85% | YoY: 15.61%
Gross Profit
Increasing
13.43B
33.38% margin
QoQ: -6.87% | YoY: 16.66%
Operating Income
Increasing
5.42B
QoQ: -17.08% | YoY: 30.77%
Net Income
Increasing
3.65B
QoQ: -20.02% | YoY: 30.24%
EPS
Increasing
3.68
QoQ: -20.17% | YoY: 30.50%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance: The Home Depot generated revenues of $40.2 billion, up 6.6% year-over-year. Despite the growth, comparable store sales declined by 1.3%, with a notable 1.2% drop in U.S. stores. Adjusted diluted earnings per share reached $3.78, down from $3.85 in the prior year, indicating a decline of 2%.
Profitability Metrics:
- Gross Profit Margin: 33.4%, a decrease of 40 basis points YoY due primarily to the SRS acquisition's impact on product mix.
- Operating Margin: Stood at 13.5%, down from 14.3% in Q3 2023.
- Net Income: $3.648 billion, reflecting a YoY increase of 30.24%, albeit a QoQ decline of 20.02% due to lower consumer activity and higher operational costs.
Cash Flow and Balance Sheet:
The company's free cash flow for the quarter was $3.415 billion, supported by strong operating cash flows of $4.233 billion. On the balance sheet, The Home Depot holds $1.531 billion in cash with total liabilities of $91.478 billion, resulting in a debt-to-equity ratio of 10.95, indicating a high leverage position.
Market Position: The Home Depot continues to position itself favorably against competitors, gaining market share in core categories such as paint and outdoor garden, thanks to strategic merchandising and supplier partnerships.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
40.22B
15.61%
-6.85%
Gross Profit
13.43B
16.66%
-6.87%
Operating Income
5.42B
30.77%
-17.08%
Net Income
3.65B
30.24%
-20.02%
EPS
3.68
30.50%
-20.17%
Key Financial Ratios
Gross Profit Margin
Fair
33.40%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
13.50%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
9.07%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Fair
3.75%
Return on assets is acceptable but below top-tier companies
Return on Equity
Strong
63.00%
Return on equity demonstrates excellent capital efficiency and value creation
Current Ratio
Adequate
1.13
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
10.95
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Growth
27.36x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
69.01x
Very high premium suggests asset-light business model or lofty expectations
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