Home Depot Earnings and Financials

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The Home Depot, Inc. (HD) reported total net sales of $159.514 billion in fiscal year 2024, the fiscal year ending February 2, 2025. Net earnings were $14.797 billion and diluted EPS was $14.91. Comparable store sales declined 1.8%, pressured by elevated mortgage rates that slowed existing home sales and reduced home-improvement spending tied to home transactions. The FY2024 results include a partial-year contribution from SRS Distribution, which Home Depot acquired for approximately $18.25 billion in June 2024, adding professional contractor distribution revenue outside the comparable-store metric.

Key financial metrics (FY2023 vs. FY2024)

Home Depot uses a 52/53-week fiscal year ending on the Sunday nearest to January 31. FY2024 therefore ended on February 2, 2025, and covers January 29, 2024 through February 2, 2025. Investors comparing Home Depot's results to calendar-year figures from other retailers should account for this offset, since the fiscal year captures the full holiday selling season ending in early February.

Total net sales rose modestly from $157.403 billion in FY2023 to $159.514 billion in FY2024, despite a second consecutive year of negative comparable store sales. The growth in total sales reflects the SRS Distribution contribution, which is excluded from the comparable-store metric because SRS operates distribution branches rather than retail stores. On a like-for-like store basis, comp sales declined 1.8%, an improvement from the 3.2% decline in FY2023 but still negative, reflecting ongoing pressure from the housing market and deferred large-project spending by DIY customers.

Net earnings declined from $15.143 billion in FY2023 to $14.797 billion in FY2024. Operating margin contracted from approximately 14.4% to approximately 13.5%, reflecting integration costs, SRS acquisition-related expenses including interest on the debt used to fund the transaction, and a softer gross margin environment relative to the prior year.

Source: The Home Depot: Form 10-K SEC Filings (CIK 0000354950)

Pro vs. DIY customer mix

Home Depot serves two distinct customer groups that behave differently across economic cycles. The Pro customer is a professional contractor, remodeler, tradesperson, or property maintenance operator who purchases building materials, tools, and supplies as inputs to paid work. Pro customers typically carry supply accounts, make frequent large purchases, and are less sensitive to short-term consumer confidence swings because their demand is driven by existing project backlogs rather than discretionary decisions.

The DIY customer is a homeowner or renter who purchases materials and tools to complete home improvement projects personally. DIY spending is more tightly linked to the housing market. When mortgage rates rise and fewer homes change hands, the transactions that generate the most intensive home improvement spending (move-in renovations, seller-preparation projects, and equity-release remodeling) decline. In FY2024, elevated mortgage rates continued to suppress existing home sales volume, weighing on DIY demand for larger project categories.

The SRS Distribution acquisition shifted the overall customer mix incrementally toward Pro, because SRS serves roofing contractors, landscaping professionals, and pool builders through a distribution model that does not overlap with the Home Depot retail store customer base. Pro customers served through SRS are not captured in the company's published comparable-store Pro revenue metrics, so the reported 50/50 split reflects only the legacy retail store channel.

Key merchandise categories serving both segments include Building Materials and Lumber, Plumbing, Electrical, Paint, Hardware, Seasonal and Garden, and Flooring. Lumber and Building Materials pricing can shift reported average ticket figures materially in either direction across periods, independent of unit volume changes.

SRS Distribution acquisition

Home Depot completed the acquisition of SRS Distribution for approximately $18.25 billion in June 2024, the largest acquisition in the company's history. SRS is a specialty building products distributor serving the residential roofing, landscaping, and pool and spa construction markets. It operates a network of distribution branches that stock and deliver products directly to trade contractors at job sites, a model distinct from the Home Depot retail store format.

The strategic rationale centers on expanding Home Depot's addressable market in the Pro contractor segment. Home Depot estimated its total addressable market at approximately $1 trillion before the acquisition, split between the consumer home improvement market and a fragmented Pro distribution market. SRS gives Home Depot direct access to roofing, landscaping, and pool contractors who typically source from specialty distributors rather than retail home centers, adding a distribution channel that complements the retail store network without cannibalizing it.

In financial terms, the SRS acquisition added revenue beginning in the second quarter of FY2024, but also added substantial debt service costs. Home Depot issued debt to fund the acquisition, which increased interest expense and contributed to the year-over-year operating margin compression from approximately 14.4% in FY2023 to approximately 13.5% in FY2024. SRS revenue is not included in comparable store sales, so investors analyzing the comp sales trend should recognize that total revenue growth in FY2024 reflects the acquisition contribution and does not indicate improvement in the legacy comparable-store business beyond the 1.4-percentage-point improvement in comp growth.

Home Depot management has indicated that SRS is expected to contribute incrementally to revenue growth in FY2025 (the fiscal year ending February 2026), the first full fiscal year with SRS consolidated for the entire period.

Dividend track record

Home Depot has increased its annual dividend for 15 or more consecutive years as of FY2024, reflecting a long record of returning capital to shareholders through a combination of dividends and share repurchases. The quarterly dividend rate of $2.25 per share represents an annualized payment of $9.00 per share.

Free cash flow of approximately $14.3 billion in FY2024 provided substantial coverage for the dividend obligation. The company's capital allocation framework prioritizes reinvestment in the business first (store maintenance, supply chain, technology, and now SRS integration), then dividends, and then share repurchases. The SRS acquisition used significant capital in FY2024, reducing share repurchase activity relative to prior years, but dividend payments continued at the elevated rate established by the annual increase policy.

Home Depot's long record of dividend increases places it in the category of companies that investors sometimes evaluate for consistent income growth. The rate of dividend growth has varied across fiscal years depending on earnings trends and capital allocation priorities. Investors should review the current declared dividend and payout history directly from Home Depot's investor relations materials rather than relying on any fixed growth rate assumption, since future increases are not guaranteed and depend on the board's periodic dividend decisions.

This page is educational in nature and does not constitute a recommendation to buy, sell, or hold any security. Past dividend history does not guarantee future dividends.

Source: The Home Depot: Investor Relations

Frequently Asked Questions

References

• The Home Depot: Investor Relations
• The Home Depot: Form 10-K SEC Filings (CIK 0000354950)

More in the Home Depot dossier

• The Home Depot overview