HOME DEPOT INC

We reported net sales of $39.9 billion in the first quarter of fiscal 2025. Net earnings were $3.4 billion, or $3.45 per diluted share.

We opened three new stores in the U.S. during the first quarter of fiscal 2025, resulting in a total store count of 2,350 at May 4, 2025. A total of 322 stores, or 13.7%, were located in Canada and Mexico. Our inventory turnover ratio was 4.3 times at the end of the first quarter of fiscal 2025, compared to 4.5 times at the end of the first quarter of fiscal 2024.

We generated $4.3 billion of cash flow from operations during the first three months of fiscal 2025. This cash flow, together with cash on hand, was used to fund cash payments of $2.3 billion for dividends, repay $1.1 billion of long-term debt, and repay $278 million of net commercial paper borrowings. In addition, we funded $806 million in capital expenditures. In February 2025, we announced a 2.2% increase in our quarterly cash dividend to $2.30 per share.

Our ROIC for the trailing twelve-month period was 31.3% at the end of the first quarter of fiscal 2025 and 37.1% at the end of the first quarter of fiscal 2024. The decrease in ROIC was primarily driven by higher average long-term debt and higher average equity due to the financing of the SRS acquisition in the second quarter of fiscal 2024. See the Non-GAAP Financial Measures section below for our definition and calculation of ROIC.

Tariffs and Other Trade Policy Matters

We are closely monitoring developments with respect to tariffs and other trade policy matters. Over the last decade, we have worked diligently to diversify our global supply chain. Based on estimates using recent purchase data, we believe over 50% of product purchases for the substantial majority of our U.S. operations are currently sourced in the U.S. We intend to continue diversifying our global supply chain, including further limiting our concentration of product purchases for the substantial majority of our U.S. operations within any single country outside the U.S. We believe these actions, along with our scale, vendor relationships, and experienced internal teams, position us to effectively mitigate the impact that tariffs in effect as of the date of this filing could have on our business, as well as allow for maximum flexibility as our global sourcing strategies evolve.

While tariff and other trade policy developments since the beginning of fiscal 2025 have not had a meaningful financial impact on our business to date, trade policy discussions are ongoing. As a result, we cannot predict with certainty their ultimate impact on our business in future periods, including our results of operations and cash flows. For more information on these risks and uncertainties see Part I, Item 1A. “Risk Factors” of our 2024 Form 10-K.