The following is a summary of the The Home Depot, Inc. (HD) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Home Depot reported Q1 sales of $36.4 billion, a decrease of 2.3% from the same period last year.

• Comparable sales were 2.8% less than in the same period of the previous year, while U.S. stores saw a decrease of 3.2% in sales.

• Gross margin for the period was at 34.1%, up about 45 basis points mainly due to benefits from lower transport costs and shrinkage issues.

• Operating margin was lower at 13.9% compared to 14.9% in Q1 2023, and diluted earnings per share dropped 5% to $3.63.

• Inventory decreased 12% to $22.4 billion compared to Q1 of 2023.

• The company invested approximately $850 million into the business through capex and share buybacks valued at $600 million.

Business Progress:

• Despite delayed spring start and negative comps, Home Depot made gains in market share and focused on enhancing interconnected experiences, notably with the intent to acquire SRS.

• They have embarked on improving the customer post-sale experiences by simplifying online order returns and pick ups, and renamed departments to boost synergy.

• Their digital platform saw a sales increase of 3.3% from Q1 of the prior year, with half the orders being processed through their stores.

• They invested in pro paint capabilities, opened two new stores, and expected a total sale growth of 1% but a comp sales decrease of 1% for fiscal 2024.

• An inventory decrease of $3 billion and an improved turnover rate to 4.5 times demonstrated solid financial health.

• The acquisition of SRS is set to increase their total addressable market by $50 billion as they aim to capture pro-share of wallet and roll out their complex pro capabilities to the top 40 markets.

More details: Home Depot IR

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