Mission Statement, Vision, & Core Values (2024) of The Home Depot, Inc. (HD).

An Overview of The Home Depot, Inc. (HD)

General Summary of The Home Depot, Inc. (HD)

The Home Depot, Inc., founded in 1978, is a leading home improvement retailer based in the United States. The company operates a chain of big-box stores selling tools, construction products, appliances, and services. As of 2024, Home Depot has a total of 2,340 stores, including 321 locations in Canada and Mexico. The company offers a wide range of products, including:

• Building materials
• Home improvement products
• Garden supplies
• Tools
• Appliances

In 2024, Home Depot reported net sales of $79.6 billion for the first six months, which reflects a 0.7% decrease compared to $80.2 billion in the same period of 2023.

Company's Financial Performance in the Latest Financial Reports

In the second quarter of fiscal 2024, Home Depot achieved net sales of $43.2 billion, an increase of 0.6% from $42.9 billion in the second quarter of fiscal 2023. The company's gross profit for the first six months of fiscal 2024 was $26.8 billion, representing a 0.5% increase compared to $26.7 billion for the same period in 2023. The gross profit margin improved to 33.7% from 33.3% year-over-year.

Operating income for the first six months of fiscal 2024 was $11.6 billion, compared to $12.1 billion in the previous year. Net earnings for the same period were $8.2 billion, with diluted earnings per share of $8.23, a decrease from $8.46 in the first six months of fiscal 2023. The company’s comparable sales decreased by 3.1% for the first half of fiscal 2024.

During the first six months of 2024, online sales represented 15.1% of total net sales, marking a 3.6% increase year-over-year. Home Depot's inventory turnover ratio was 4.9 times at the end of the second quarter of fiscal 2024.

Introduction to The Home Depot as a Leader in the Industry

The Home Depot is recognized as one of the leading companies in the home improvement retail industry. Its extensive product offerings and comprehensive services have established it as a go-to destination for both DIY enthusiasts and professional contractors. The recent acquisition of SRS, completed on June 18, 2024, aims to enhance Home Depot's position within the residential professional market. The company continues to invest in technology and customer experience, planning to allocate approximately $3.0 billion to $3.5 billion in capital expenditures for fiscal 2024.

Mission Statement of The Home Depot, Inc. (HD)

Mission Statement Overview

The Home Depot, Inc. (HD) operates with a mission statement that emphasizes its commitment to providing the highest quality products and services to customers, while also fostering an inclusive environment for its associates. This mission guides the company's long-term goals and strategic decisions.

Core Component 1: Customer Commitment

The first core component of The Home Depot’s mission statement is its unwavering commitment to customers. This commitment is reflected in various aspects of their operations, such as their extensive product selection and customer service initiatives.

As of the second quarter of fiscal 2024, The Home Depot reported net sales of $43.2 billion, a slight increase from $42.9 billion in the same quarter of the previous year. This growth can be attributed to the company's focus on enhancing customer experience through improved service and product offerings.

Core Component 2: Quality Products

The Home Depot emphasizes providing quality products as a pivotal aspect of its mission. This focus not only satisfies customer needs but also builds brand loyalty. In fiscal 2024, the company invested approximately $1.6 billion in capital expenditures, highlighting its commitment to maintaining and improving product quality and store infrastructure.

During the first six months of fiscal 2024, gross profit increased to $26.8 billion, reflecting a gross profit margin of 33.7%, up from 33.3% in the same period of the previous year. This increase is indicative of improved cost management and a focus on higher-margin products.

Core Component 3: Associate Development

The third component of the mission statement is the development of associates. The Home Depot believes in investing in its workforce to ensure high levels of service and operational efficiency. In February 2024, the company announced a 7.7% increase in its quarterly cash dividend to $2.25 per share, demonstrating its commitment to returning value to shareholders, which indirectly supports associate compensation and benefits.

The company also reported a diluted earnings per share of $8.23 for the first six months of fiscal 2024, down from $8.46 in the previous year, reflecting the impact of market conditions on profitability.

Overall, The Home Depot’s mission statement encapsulates its dedication to customer satisfaction, product quality, and associate development, which are crucial for its sustained growth and success in the home improvement retail sector.

Vision Statement of The Home Depot, Inc. (HD)

Vision Statement Overview

The Home Depot, Inc. (HD) has articulated a vision that emphasizes customer service, innovation, and community engagement. This vision guides the company's strategic direction and operational decisions as of 2024.

Customer-Centric Focus

At the core of The Home Depot's vision is a strong commitment to customer satisfaction. The company aims to provide exceptional service and a wide range of products to meet the diverse needs of its customers.

• Net sales for the first six months of fiscal 2024 totaled $79.6 billion, reflecting a decrease of 0.7% from the previous year.
• Comparable sales decreased by 3.1%, influenced by a 1.9% drop in customer transactions and a 1.3% decline in average ticket size.

Innovation and Technology Integration

The Home Depot continues to invest in technology to enhance the shopping experience. This includes online sales channels and innovative in-store technologies to streamline the purchasing process.

Community Engagement

The Home Depot actively engages with communities through various initiatives, including charitable contributions and volunteer efforts by employees.

• In fiscal 2024, The Home Depot plans to invest approximately $3.0 billion to $3.5 billion in capital expenditures, focusing on community and customer experience improvements.
• The company paid cash dividends of $4.5 billion during the first six months of fiscal 2024, reflecting its commitment to returning value to shareholders while supporting community initiatives.

Sustainability and Environmental Responsibility

The Home Depot's vision incorporates sustainability, with efforts aimed at reducing its environmental footprint and promoting sustainable practices.

• The company has made significant strides in reducing operational waste and improving energy efficiency across its stores.
• In fiscal 2024, The Home Depot's gross profit margin improved to 33.7%, attributed partly to lower transportation costs and a focus on sustainability.

Financial Performance Indicators

Understanding the financial context is crucial to evaluating The Home Depot's vision and its execution.

Core Values of The Home Depot, Inc. (HD)

Core Value 1: Customer Service

The Home Depot, Inc. prioritizes exceptional customer service as a core value, which is crucial for maintaining customer loyalty and satisfaction. This commitment is evident through various initiatives aimed at enhancing the shopping experience.

• In 2024, The Home Depot invested approximately $1.6 billion in capital expenditures focused on improving customer experience through technology enhancements and store upgrades.
• Online sales represented 15.1% of net sales during the first six months of fiscal 2024, reflecting a 3.6% increase compared to the prior year, demonstrating the company’s commitment to meeting customer needs across multiple platforms.
• The company has implemented a customer service training program for its associates, ensuring that employees are equipped to assist customers effectively in-store and online.

Core Value 2: Respect for All People

The Home Depot emphasizes respect for all individuals, fostering an inclusive environment for employees and customers alike. This value underpins the company’s diverse workforce and community engagement initiatives.

• As of July 28, 2024, The Home Depot employed approximately 500,000 associates across its stores, with ongoing efforts to promote diversity and inclusion within its workforce.
• The company has actively participated in community service projects, contributing over $100 million in cash and product donations to various community organizations in 2024.
• In 2023, The Home Depot launched a new diversity training initiative aimed at enhancing cultural competency across all levels of the organization.

Core Value 3: Doing the Right Thing

Integrity and ethical behavior are foundational to The Home Depot’s operations. The company strives to conduct business responsibly and transparently.

• In 2024, The Home Depot reported a commitment to sustainability by reducing greenhouse gas emissions by 35% by 2030, aligning with global environmental goals.
• The company has established a Supplier Code of Conduct, ensuring that all suppliers adhere to ethical labor practices and environmental standards.
• The Home Depot has pledged to invest $1 billion in affordable housing initiatives over the next five years, reflecting its commitment to positively impacting communities.

Core Value 4: Giving Back

The Home Depot is dedicated to giving back to the communities it serves, demonstrating a commitment to social responsibility.

• In 2024, The Home Depot Foundation announced a $50 million investment to support veteran housing initiatives, providing resources for renovations and new constructions.
• The company’s Team Depot program mobilizes associates to volunteer in local community projects, with over 1 million volunteer hours logged in 2023.
• As part of its commitment to education, The Home Depot has partnered with various trade schools, providing scholarships and resources to support the next generation of tradespeople.

Core Value 5: Excellence

The Home Depot strives for excellence in its operations, aiming to be the best in the home improvement retail industry.

• In the second quarter of fiscal 2024, The Home Depot achieved net sales of $43.2 billion, reflecting a 0.6% increase from the previous year, showcasing its market leadership.
• The company has consistently been recognized for its operational efficiency, with sales per retail square foot reported at $660.17 for Q2 2024.
• The Home Depot's return on invested capital (ROIC) was reported at 31.9% for the trailing twelve months, demonstrating effective capital management.