The Home Depot Announces Second Quarter Results; Raises Fiscal Year 2013 Guidance

The Home Depot Announces Second Quarter Results; Raises Fiscal Year 2013 
Guidance 
ATLANTA, Aug. 20, 2013 /CNW/ - The Home Depot(®), the world's largest home 
improvement retailer, today reported sales of $22.5 billion for the second 
quarter of fiscal 2013. On a like for like basis, comparable store sales for 
the second quarter of fiscal 2013 were positive 10.7 percent, and comp sales 
for U.S. stores were positive 11.4 percent. Total sales increased 9.5 percent 
from the second quarter of fiscal 2012. Due to the 14th week in the fourth 
quarter of fiscal 2012, second quarter sales were impacted by a calendar 
timing change that resulted in one less week of spring sales in the second 
quarter when compared to the same period of fiscal 2012. This shift reduced 
total sales growth by approximately $249 million or 120 basis points. 
(Logo: http://photos.prnewswire.com/prnh/20030502/HOMEDEPOTLOGO ) 
Net earnings for the second quarter were $1.8 billion, or $1.24 per diluted 
share, compared with net earnings of $1.5 billion, or $1.01 per diluted share, 
in the same period of fiscal 2012. For the second quarter of fiscal 2013, 
diluted earnings per share increased 22.8 percent from the same period in the 
prior year. 
"The second quarter results exceeded our expectations as our business 
benefited from a rebound in our seasonal categories, continued strength in the 
core of the store and the recovering housing market in the U.S.," said Frank 
Blake, chairman & CEO. "Our associates did an outstanding job of responding to 
the strong increased demand.  I would like to thank them for their hard work 
and dedication." 
Updated Fiscal 2013 Guidance 
Based on its year-to-date performance and outlook for the balance of the year, 
the Company raised its fiscal 2013 sales guidance and now expects sales to be 
up approximately 4.5 percent with comparable store sales up approximately 6.0 
percent for the year. The Company raised its fiscal 2013 diluted 
earnings-per-share guidance and now expects diluted earnings per share to be 
up approximately 20 percent to $3.60 for the year. The Company's fiscal 2013 
sales and earnings-per-share guidance is based on a 52-week year compared to 
fiscal 2012, a 53-week year. 
This earnings-per-share guidance includes the benefit of the Company's 
year-to-date share repurchases totaling $4.3 billion and the Company's intent 
to repurchase $2.2 billion of additional shares over the remainder of the year. 
The Home Depot will conduct a conference call today at 9 a.m. ET to discuss 
information included in this news release and related matters. The conference 
call will be available in its entirety through a webcast and replay at 
earnings.homedepot.com. 
At the end of the second quarter, the Company operated a total of 2,258 retail 
stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin 
Islands, Guam, 10 Canadian provinces and Mexico. The Company employs more than 
300,000 associates. The Home Depot's stock is traded on the New York Stock 
Exchange (NYSE: HD) and is included in the Dow Jones industrial average and 
Standard & Poor's 500 index. 
Certain statements contained herein constitute "forward-looking statements" as 
defined in the Private Securities Litigation Reform Act of 1995. 
Forward-looking statements may relate to, among other things, the demand for 
our products and services, net sales growth, comparable store sales, state of 
the economy, state of the residential construction, housing and home 
improvement markets, state of the credit markets, including mortgages, home 
equity loans and consumer credit, inventory and in-stock positions, commodity 
price inflation and deflation, implementation of store and supply chain 
initiatives, continuation of share repurchase programs, net earnings 
performance, earnings per share, capital allocation and expenditures, 
liquidity, return on invested capital, management of relationships with our 
suppliers and vendors, stock-based compensation expense, the effect of 
accounting charges, the effect of adopting certain accounting standards, the 
ability to issue debt on terms and at rates acceptable to us, store openings 
and closures, expense leverage, guidance for fiscal 2013 and beyond and 
financial outlook.  Forward-looking statements are based on currently 
available information and our current assumptions, expectations and 
projections about 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 or are currently unknown to us – as well as potentially 
inaccurate assumptions that could cause actual results to differ materially 
from our expectations and projections. These risks and uncertainties include 
but are not limited to those described in Item 1A, "Risk Factors," and 
elsewhere in our Annual Report on Form 10-K for our fiscal year ended February 
3, 2013 and in our subsequent Quarterly Reports on Form 10-Q. 
Forward-looking statements speak only as of the date they are made, and we do 
not undertake to update these statements other than as required by law. You 
are advised, however, to review any further disclosures we make on related 
subjects in our periodic filings with the Securities and Exchange Commission. 
THE HOME DEPOT, INC. AND SUBSIDIARIES 
CONSOLIDATED STATEMENTS OF EARNINGS 
FOR THE THREE AND SIX MONTHS ENDED AUGUST 4, 2013 AND JULY 29, 2012 
(Unaudited) 
(Amounts in Millions Except Per Share Data and as Otherwise Noted) 


               Three Months Ended                Six Months Ended
               August 4,  July 29,   % Increase  August 4,  July 29,   % Increase
               2013       2012       (Decrease)  2013       2012       (Decrease)

NET SALES      $ 22,522   $ 20,570   9.5     %   $ 41,646   $ 38,378   8.5     %

Cost of Sales  14,801     13,544     9.3         27,246     25,169     8.3

GROSS PROFIT   7,721      7,026      9.9         14,400     13,209     9.0

Operating
Expenses:

Selling,
General and    4,294      4,066      5.6         8,477      8,152      4.0
Administrative

Depreciation
and            409        391        4.6         811        774        4.8
Amortization

Total
Operating      4,703      4,457      5.5         9,288      8,926      4.1
Expenses

OPERATING      3,018      2,569      17.5        5,112      4,283      19.4
INCOME

Interest and
Other (Income)
Expense:

Interest and
Investment     (2)        (4)        (50.0)      (5)        (9)        (44.4)
Income

Interest       174        155        12.3        338        311        8.7
Expense

Other          —    —    —     —    (67)       (100.0)

Interest and   172        151        13.9        333        235        41.7
Other, net

EARNINGS
BEFORE
PROVISION FOR  2,846      2,418      17.7        4,779      4,048      18.1

INCOME TAXES

Provision for  1,051      886        18.6        1,758      1,481      18.7
Income Taxes

NET EARNINGS   $ 1,795    $ 1,532    17.2    %   $ 3,021    $ 2,567    17.7    %

Weighted
Average Common 1,434      1,501      (4.5)   %   1,452      1,513      (4.0)   %
Shares

BASIC EARNINGS $ 1.25     $ 1.02     22.5        $ 2.08     $ 1.70     22.4
PER SHARE

Diluted
Weighted       1,443      1,512      (4.6)   %   1,462      1,525      (4.1)   %
Average Common
Shares

DILUTED
EARNINGS PER   $ 1.24     $ 1.01     22.8        $ 2.07     $ 1.68     23.2
SHARE
               Three Months Ended                Six Months Ended

SELECTED       August 4,  July 29,   % Increase  August 4,  July 29,   % Increase
HIGHLIGHTS
               2013       2012       (Decrease)  2013       2012       (Decrease)

Number of
Customer       393.2      374.9      4.9     %   730.3      703.9      3.8     %
Transactions

Average Ticket $ 57.39    $ 55.02    4.3         $ 57.32    $ 54.78    4.6
(actual)

Weighted
Average Weekly
Sales per


           $ 768      $ 704      9.1         $ 713      $ 658      8.4
Operating
Store (in
thousands) 
Square Footage
at End of      235        236        (0.4)       235        236        (0.4)
Period 
Capital        $ 321      $ 323      (0.6)       $ 599      $ 551      8.7
Expenditures 
Depreciation
and            $ 442      $ 423      4.5     %   $ 877      $ 833      5.3     %
Amortization (
(1)) 
————— 
(1) Includes depreciation of distribution centers and tool rental equipment 
included in Cost of Sales and amortization of deferred financing costs 
included in Interest Expense. 
THE HOME DEPOT, INC. AND SUBSIDIARIES 
CONSOLIDATED BALANCE SHEETS 
AS OF AUGUST 4, 2013, JULY 29, 2012 AND FEBRUARY 3, 2013 
(Unaudited) 
(Amounts in Millions) 
                                  August 4,  July 29,   February 3, 


                                      2013       2012       2013

ASSETS

Cash and Cash Equivalents             $ 3,419    $ 2,810    $ 2,494

Receivables, net                      1,542      1,505      1,395

Merchandise Inventories               11,086     10,910     10,710

Other Current Assets                  848        1,006      773

Total Current Assets                  16,895     16,231     15,372

Property and Equipment, net           23,650     24,154     24,069

Goodwill                              1,170      1,157      1,170

Other Assets                          477        441        473

TOTAL ASSETS                          $ 42,192   $ 41,983   $ 41,084

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts Payable                      $ 6,585    $ 6,137    $ 5,376

Accrued Salaries and Related Expenses 1,423      1,370      1,414

Current Installments of Long-Term     1,308      34         1,321
Debt

Other Current Liabilities             3,679      3,693      3,351

Total Current Liabilities             12,995     11,234     11,462

Long-Term Debt, excluding current     11,450     10,771     9,475
installments

Other Long-Term Liabilities           2,269      2,344      2,370

Total Liabilities                     26,714     24,349     23,307

Total Stockholders' Equity            15,478     17,634     17,777

TOTAL LIABILITIES AND STOCKHOLDERS'   $ 42,192   $ 41,983   $ 41,084
EQUITY

THE HOME DEPOT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED AUGUST 4, 2013 AND JULY 29, 2012

(Unaudited)

(Amounts in Millions)
                                                    Six Months Ended
                                                    August 4,  July 29,
                                                    2013       2012

CASH FLOWS FROM OPERATING ACTIVITIES:

Net Earnings                                        $ 3,021    $ 2,567

Reconciliation of Net Earnings to Net Cash Provided
by Operating Activities:

Depreciation and Amortization                       877        833

Stock-Based Compensation Expense                    116        107

Changes in Working Capital and Other                704        754

Net Cash Provided by Operating Activities           4,718      4,261

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital Expenditures                                (599)      (551)

Payments for Businesses Acquired, net               (13)       (45)

Proceeds from Sales of Property and Equipment       16         15

Net Cash Used in Investing Activities               (596)      (581)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from Long-Term Borrowings, net of discount 1,994      —

Repayments of Long-Term Debt                        (17)       (16)

Repurchases of Common Stock                         (4,346)    (2,630)

Proceeds from Sales of Common Stock                 150        553

Cash Dividends Paid to Stockholders                 (1,143)    (880)

Other                                               154        122

Net Cash Used in Financing Activities               (3,208)    (2,851)

Change in Cash and Cash Equivalents                 914        829

Effect of Exchange Rate Changes on Cash and Cash    11         (6)
Equivalents

Cash and Cash Equivalents at the Beginning of the   2,494      1,987
Period

Cash and Cash Equivalents at the End of the Period  $ 3,419    $ 2,810



SOURCE  The Home Depot 
Financial Community, Diane Dayhoff, Vice President of Investor Relations, 
770-384-2666, diane_dayhoff@homedepot.com; or News Media, Stephen Holmes, 
Director of Corporate Communications, 770-384-5075, 
stephen_holmes@homedepot.com 
http://www.homedepot.com 
http://photos.prnewswire.com/prnh/20030502/HOMEDEPOTLOGO 
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CO: The Home Depot
ST: Georgia
NI: RET HOU CST ERN EST ERN CONF  
-0- Aug/20/2013 10:01 GMT