What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2025-03-21 compared with 2024-03-13 · 122 added, 183 removed, 185 unchanged (62% of the section changed)

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is the world’s largest home improvement retailer based on net sales for fiscal 2024.

We offer our customers a wide assortment of building materials, home improvement products, lawn and garden products, décor products, and facilities maintenance, repair and operations products.

We offer our customers a wide assortment of building materials, home improvement products, lawn and garden products, décor products, and facilities MRO products, in stores and online.

We also provide a number of services, including home improvement installation services, and tool and equipment rental.

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We also maintain a network of distribution and fulfillment centers, as well as a number of e-commerce websites in the U.S., Canada and Mexico.

When we refer to “The Home Depot,” the “Company,” “we,” “us” or “our” in this report, we are referring to The Home Depot, Inc.

For disclosure purposes, the geographic operating segments of the U.S., Canada and Mexico are aggregated into one reportable segment (the “Primary segment”).

In fiscal 2024, we acquired SRS, a leading residential specialty trade distribution company engaged in the distribution of residential and commercial roofing products, complementary building products, landscape supplies and swimming pool supplies serving the professional roofer, landscaper, and pool contractor.

At the end of fiscal 2024, SRS operated over 780 branch locations throughout the U.S., each of which has a distribution center, material handling and delivery equipment, and inventory.

SRS is organized as three different lines of business:

roofing and complementary building products, landscape, and pool.

Each line of business was determined to represent an operating segment, none of which are deemed reportable segments.

Unless otherwise indicated or the context otherwise requires, when we refer to “The Home Depot,” “Home Depot,” the “Company,” “we,” “us” or “our” in this report, we are referring to The Home Depot, Inc.

and its consolidated subsidiaries.

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The retail landscape has changed rapidly over the past several years, with a complex macroeconomic environment and customer expectations continually evolving.

In fiscal 2023, we experienced a year of moderation after the unprecedented growth of the prior three years, as we navigated the continued shift in consumer consumption trends away from goods and towards services and the impact of a rising interest rate environment.

Our ability to operate successfully and meet the needs of our customers in an efficient and cost-effective way was due in significant part to our investments over the past several years aimed at creating an interconnected, frictionless shopping experience that enables our customers to seamlessly blend the digital and physical worlds.

In fiscal 2024, our strategy allowed us to continue to execute at a high level despite continued pressure on home improvement demand from high interest rates and macroeconomic uncertainty.

We continued our strategic investments aimed at creating an interconnected, frictionless shopping experience that enables our customers to seamlessly blend the digital and physical worlds, growing our market share with Pros through our ecosystem of capabilities, and building new stores.

Going forward, we will continue to leverage the momentum of these investments and invest in our business in support of the following goals:

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We believe that these goals will help us grow faster than the market and deliver value to our shareholders.

We are steadfast in this commitment, while also recognizing that exercising corporate responsibility and being informed by the needs of our other stakeholders, including our customers, associates, supplier partners, and communities, creates value for all stakeholders, including our shareholders.

We are steadfast in our commitments to focus on our people, operate sustainably, and strengthen our communities, and we believe being informed by other stakeholder perspectives will drive shareholder value creation.

DELIVER SHAREHOLDER VALUE

We deliver on our objective to create shareholder value through our disciplined approach to capital allocation.

We seek to deliver on our objective to create shareholder value through our disciplined approach to capital allocation.

Our capital allocation principles are as follows:

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• Third, after reinvesting in our business and paying our dividend, we intend to return excess cash to our shareholders through share repurchases.

In fiscal 2023, we invested $3.2 billion in capital expenditures to support our business, advance our goals, and continue to build an interconnected customer experience.

We also focused on driving productivity throughout the business by lowering our product and transportation costs and initiating a plan to reduce our fixed cost structure by approximately $500 million, which we expect will be realized in fiscal 2024.

The combination of reinvesting in the business to drive higher sales and supporting productivity to lower costs allows us to improve our customer experience, increase our competitiveness in the market, and deliver shareholder value.

Fiscal 2024 Form 10-K

In fiscal 2023, we returned over $16 billion to shareholders in the form of cash dividends and share repurchases.

In fiscal 2024, we invested $3.5 billion in capital expenditures to support our business, advance our goals, and continue to build an interconnected customer experience.

We also acquired SRS to accelerate our growth with Pros.

We continue to focus on driving productivity throughout the business by lowering our product and transportation costs, and in fiscal 2024 we executed a plan to reduce our fixed cost structure by approximately $500 million.

The combination of reinvesting in our business to drive higher sales and driving productivity to lower costs allows us to improve our customer experience, increase our competitiveness in the market, and deliver shareholder value.

In fiscal 2024, we returned $8.9 billion to shareholders in the form of cash dividends.

We also returned $0.6 billion to shareholders in the form of share repurchases prior to pausing share repurchases in March 2024 in anticipation of the SRS acquisition.

Our capital allocation is discussed further in Part II, Item 7.

Management’s Discussion and Analysis of Financial Condition and Results o f Ope ration s .

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

OUR CUSTOMERS

We serve two primary customer groups — consumers (including both DIY and DIFM customers) and professional customers — and have developed varying approaches to meet their diverse needs:

We serve two primary customer groups — consumers (including both DIY and DIFM customers) and Pros — and have developed varying approaches to meet their diverse needs:

DIY Customers

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Our associates assist these customers both in our stores and through online resources and other media designed to provide product and project knowledge.

We also offer a variety of clinics and workshops both to share this knowledge and to build an emotional connection with our DIY customers.

As the preferences and behaviors of our DIY customers are changing, we are investing in capabilities to better serve the needs of those customers.

We also offer a variety of clinics and workshops to share this knowledge and to build an emotional connection with our DIY customers.

As the preferences and behaviors of our DIY customers are changing, we are investing in capabilities to better meet the evolving expectations of these customers.

Professional Customers (or “Pros”)

These customers are primarily professional renovators/remodelers, general contractors, maintenance professionals, handymen, property managers, building service contractors and specialty tradespeople, such as electricians, plumbers and painters.

These customers are primarily professional renovators/remodelers, general contractors, small to medium homebuilders, maintenance professionals, handymen, property managers, building service contractors and specialty tradespeople, such as electricians, landscapers, plumbers, painters, pool contractors, and roofers.

These customers build, renovate, remodel, repair, and maintain residential properties, multifamily properties, hospitality properties, and commercial facilities, including education, healthcare, government, institutional, and office buildings.

We have a number of initiatives designed to drive growth with Pros, including those working on both simple and complex projects.

In fiscal 2024, we acquired SRS, which sells products to specialty trade roofers, landscapers, and pool contractors.

We remain focused on providing a customized online experience, a dedicated sales force, a broad assortment of Pro-focused products and brands, an extensive delivery network, our Pro Xtra loyalty program, and enhanced credit offerings.

Building on our historical strength as a destination for urgent purchase needs, we are investing in differentiated capabilities that will help us better serve our Pros’ complex purchase needs, including expanded supply chain capabilities, additional trade credit offerings, more showroom space, and an enhanced order management system.

We serve the MRO marketplace through our subsidiary HD Supply, a leading national distributor and provider of MRO products and related value-added services to multifamily, hospitality, healthcare, and government housing facilities, among others.

Our MRO operations use a distribution center-based model that sells products primarily through a professional sales force and through e-commerce platforms and print catalogs.

In October 2023, we announced changes to our leadership structure, aligning our outside sales and service business with our global store organization to better serve our Pros by leveraging our full ecosystem and newest capabilities.

We recognize the great value our Pros provide to their clients, and we strive to make their jobs easier and help them grow their businesses, from expanded capabilities to improve their business and customer experience to the Path to Pro network we are building for Pros to connect with jobseekers to help address the skilled labor shortage.

We believe that investments aimed at deepening our relationships with our Pros are yielding increased engagement and will continue to translate into incremental sales to these customers.

Building on our historical strength as a destination for urgent purchase needs, we are investing in differentiated capabilities that will help us better serve our Pros’ complex purchase needs, including differentiated fulfillment options, additional trade credit offerings including our Pro House Account program, more showroom space, and an enhanced order management system.

We also provide MRO products and related value-added services to multifamily, hospitality, healthcare, and government housing facilities, among others, primarily through our subsidiary HD Supply.

DIFM Customers

Intersecting our DIY customers and our Pros are our DIFM customers.

These customers are typically homeowners who use Pros to complete their project or installation.

These customers are typically homeowners who use Pros to complete their projects or installations.

Currently, we offer installation services in a variety of categories, such as flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows.

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In addition to serving our DIFM customer needs, we believe our focus on the Pros who perform services for these customers helps us drive higher product sales.

Fiscal 2024 Form 10-K

OUR PRODUCTS AND SERVICES

A typical The Home Depot store stocks approximately 30,000 to 40,000 items during the year, including both national brand name and proprietary products.

A typical Home Depot store stocks approximately 30,000 to 40,000 items during the year, including both national brand name and proprietary products, across the following merchandising departments:

Appliances, Bath, Building Materials, Electrical, Flooring, Hardware, Indoor Garden, Kitchen & Blinds, Lighting, Lumber, Millwork, Outdoor Garden, Paint, Plumbing, Power, and Storage & Organization.

Our online product offerings complement our stores by serving as an extended aisle, and we offer a significantly broader product assortment through our websites and mobile applications, including homedepot.com, our primary website;

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our websites for custom window coverings including blinds.com, justblinds.com and americanblinds.com;

and thecompanystore.com, our website featuring textiles and décor products.

Fiscal 2023 Form 10-K

thecompanystore.com, our website featuring textiles and décor products;

and srsdistribution.com, heritagelandscapesupplygroup.com, and heritagepoolsupplygroup.com, our websites serving the roofing and building materials, landscape and pool product needs of specialty Pros, respectively.

We believe our merchandising organization is a key competitive advantage, delivering product innovation, assortment and value, which reinforces our position as the product authority in home improvement.

In fiscal 2023, we continued to invest in merchandising resets in our stores to refine assortments, optimize space productivity, introduce innovative new products to our customers, and improve visual merchandising to drive a better shopping experience.

At the same time, we remain focused on offering everyday values in our stores and online.

To help our merchandising organization keep pace with changing customer expectations and increasing desire for innovation, localization, and personalization, we are continuing to invest in tools to better leverage our data and drive a deeper level of collaboration with our supplier partners.

As a result, we have continued to focus on enhanced merchandising information technology tools to help us:

(1) build an interconnected shopping experience that is tailored to our customers’ shopping intent and location;

At the same time, we remain focused on offering the right products at everyday values in our stores and online.

To remain the product authority, we must continue to bring new and innovative products to our customers that help simplify their projects, from the Pro’s need for job-lot quantities of specialized products to DIY customers seeking products to reduce their environmental impacts.

As a result, we continue to focus on enhanced merchandising information technology tools to help us:

(1) enhance an interconnected shopping experience that remains tailored to our customers’ shopping intent and location;

(2) provide the best value in the market;

and (3) optimize our product assortments.

Our merchandising team leverages technology and works closely with our inventory and supply chain teams, as well as our supplier partners, to manage our assortments, drive innovation, manage the cost environment, and adjust inventory levels to respond to fluctuations in demand.

Our merchandising team leverages technology and works closely with our inventory and supply chain teams, as well as our suppliers, to manage our assortments, drive innovation, manage the cost environment, and adjust inventory levels to respond to fluctuations in demand.

To complement our merchandising efforts, we offer a number of services for our customers, including installation services for our DIY and DIFM customers, as noted above.

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and Canada, providing value and convenience for both Pros and consumers.

To improve the customer experience and continue to grow this differentiated service offering, we are continuing to invest in more locations (including continuing to pilot rental locations in Mexico), more tools, and better technology.

To improve the customer experience and continue to grow this differentiated service offering, we are continuing to invest in more tool rental locations, more tools, and better technology.

Sourcing and Quality Assurance

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During fiscal 2024, in addition to our U.S.

sourcing operations, we maintained sourcing offices in Mexico, Canada, China, India, Vietnam and Europe.

sourcing operations, we maintained sourcing offices in Mexico, Canada, China, India, Vietnam, Taiwan, and Europe.

To ensure that suppliers adhere to our high standards of social and environmental responsibility, we also have a global responsible sourcing program.

Under our supplier contracts, our suppliers are obligated to ensure that their products comply with applicable international, federal, state and local laws.

These contracts also require compliance with our responsible sourcing standards, which cover a variety of expectations across multiple areas of social compliance, including supply chain transparency, compliance with applicable laws and regulations addressing prohibitions on child and forced labor, health and safety, environmental matters, compensation, and hours of work.

To drive accountability with our suppliers, our standard supplier buying agreement includes a factory audit right related to these standards, and we conduct factory audits and compliance visits with non-Canada and non-U.S.

Under our standard supplier buying agreement, our suppliers are obligated to ensure that their products comply with applicable international, federal, state and local laws.

This standard agreement also requires compliance with our responsible sourcing standards, which cover a variety of expectations, including supply chain transparency, compliance with applicable laws and regulations addressing prohibitions on child and forced labor, health and safety, environmental matters, compensation, and hours of work.

To drive accountability with our suppliers, our standard supplier buying agreement also includes a factory audit right related to these standards, and we conduct risk-based factory audits and compliance visits with non-Canada and non-U.S.

suppliers of private branded and direct import products.

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However, trademarks are generally valid and may be renewed indefinitely as long as they are in use and/or their registrations are properly maintained.

Fiscal 2024 Form 10-K

We also maintain patent portfolios relating to our business operations, retail services, and products, and we seek to patent or otherwise protect innovations we incorporate into our business.

Patents generally have a term of twenty years from the date they are filed.

As our patent portfolio has been built over time, the remaining terms of the individual patents across our patent portfolio vary.

As our patent portfolio has been built over time, the remaining terms of individual patents across our patent portfolio vary.

Although our patents have value, no single patent is essential to our business.

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COMPETITION AND SEASONALITY

Our industry is highly competitive, fragmented, and evolving.

Our industry is highly competitive, highly fragmented, and evolving.

As a result, we face competition for customers for our products and services from a variety of retailers, suppliers, service providers, and distributors and manufacturers that sell products directly to their respective customer bases.

These competitors range from traditional brick-and-mortar, to multichannel, to exclusively online, and they include a number of other home improvement retailers;

Fiscal 2023 Form 10-K

regional and national hardware stores;

local, regional and national hardware stores;

electrical, plumbing and building materials supply houses;

and lumber yards.

With respect to some products and services, we also compete with specialty design stores, showrooms, discount stores, paint stores, specialty and mass digital retailers, warehouse clubs, MRO distributors, home décor retailers, and other retailers, as well as with providers of home improvement services and tool and equipment rental.

With respect to some products and services, we also compete with specialty design stores, showrooms, discount stores, paint stores, specialty and mass digital retailers, warehouse clubs, MRO distributors, national and local wholesale supply distributors, home décor retailers, and other retailers, as well as with providers of home improvement services and tool and equipment rental.

The internet facilitates competitive entry, price transparency, and comparison shopping, increasing the level of competition we face.

Both in-store and online, we compete primarily based on customer experience, price, quality, product availability and assortment, and delivery options.

We also compete based on store location and appearance, presentation of merchandise, and ease of shopping experience.

Both in-store and online, we compete primarily based on customer experience;

product availability, assortment, and innovation;

and delivery options and capabilities.

We also compete based on store and branch location and appearance, presentation of merchandise, and ease of shopping experience throughout every step of the project, from inspiration and research to any post-purchase support.

Our Pros also look for dedicated sales support, competitive credit and pricing options, project planning tools, and product depth and job-lot quantities, particularly for their complex purchase needs.

Furthermore, with respect to delivery options, customers are seeking faster and/or guaranteed delivery times, low-price or free shipping, and/or convenient pickup options.

Our ability to be competitive on delivery and pickup times, options and costs depends on many factors, including the success of our supply chain investments, described more fully under “Our Supply Chain” below.

Our business is subject to seasonal influences.

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INTERCONNECTED SHOPPING EXPERIENCE

We continue to enhance our capabilities to provide our customers with a frictionless interconnected shopping experience across our stores, online, on the job site, and in their homes, focusing on continued investments in our website and mobile apps to enhance the digital customer experience.

We continue to enhance our capabilities to provide our customers with a frictionless interconnected shopping experience across our stores, branches, online, on the job site, and in their homes, focusing on continued investments in our websites and mobile apps to enhance the customer experience.

Digital Experience

Enhancements to our digital properties are critical for our increasingly interconnected customers, who often research products and check available inventory online before going into one of our stores to view products in person or talk to an associate and then making their purchase either in store or online.

Enhancements to our digital platforms are critical for our increasingly interconnected customers, who often research products and check available inventory online before going into one of our stores to view products in person or talk to an associate and then making their purchase either in store or online.

While in the store, customers may also go online to access ratings and reviews, compare prices, view our extended assortment, and purchase additional products.

Our investments in a truly interconnected experience are focused on bringing together the power of our physical retail presence and the frictionless interaction of our digital capabilities.

A significant majority of the traffic in our digital channels is on mobile devices.

Mobile customers expect more simplicity and relevancy in their digital interactions.

As a result, we have made investments in our digital properties to improve the overall presentation and ease of navigation for the user.

Our investments in a truly interconnected experience are focused on bringing together the power of our physical presence and the frictionless interaction of our digital capabilities.

A significant majority of the traffic in Home Depot’s digital channels is on mobile devices.

Mobile users expect more simplicity and relevancy in their digital interactions.

In addition to supporting our DIY and DIFM customers on their shopping journeys, mobile devices can also help serve the needs of Pros working on complex projects.

As a result, we have made investments in our digital platforms to improve the overall presentation and ease of navigation for the user.

We have also enhanced the “shopability” of an online product by including more information on the product’s landing page, including related products and/or parts of a collection, as well as various fulfillment options.

We believe our focus on improving search capabilities, site functionality, category presentation, product content, speed to checkout, and fulfillment options has yielded higher traffic, better conversion and continued sales growth.

We believe our focus on improving search capabilities, site functionality, category presentation, product content such as customer product review summaries, speed to checkout, and fulfillment options has yielded higher traffic, better conversion and continued sales growth.

As our customers expect a more personalized experience, our ability to collect, use, retain, and protect relevant customer data is important for our ability to effectively meet their expectations.

Fiscal 2024 Form 10-K

Further, we do not view the interconnected shopping experience as a specific transaction;

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We have also empowered our customers with additional self-help tools, including mobile app-enabled store navigation.

Our app provides store-specific maps, which allow customers to pinpoint the exact location of an item on their mobile devices.

Finally, we have also invested in compensation enhancements for our front-line associates, which we believe are contributing to lower attrition, increased associate engagement, and fewer safety incidents in our stores.

We believe these investments

Fiscal 2023 Form 10-K

are driving higher customer satisfaction scores, and we will continue to invest to improve the customer experience.

In addition, we have identified areas that have experienced significant population growth or where market voids exist, and in fiscal 2023 we initiated a plan to open approximately 80 new stores over a five-year period to address those opportunities.

These new stores will help relieve pressure at existing high-volume stores and add stores in areas with less store coverage, helping us to improve the customer experience and drive revenue growth.

Our app provides store-specific maps that allow customers to pinpoint the exact location of an item on their mobile devices.

We believe these investments are driving higher customer satisfaction scores, and we will continue to invest to improve the customer experience.

In addition, we have identified areas that have experienced significant population growth or where market voids exist.

In fiscal 2023, we initiated a plan to open approximately 80 new stores over a five-year period to address those opportunities, and in fiscal 2024, we op ened 12 new stores.

These new stores will continue to help relieve pressure at existing high-volume stores and add stores in areas with less store coverage, helping us to improve the customer experience and drive sales growth.

Investing in Associate Productivity.

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To this end, we have continued to focus on process improvements like optimizing product flow to improve on-shelf product availability and thus decrease the amount of time store associates spend locating products;

creating a simpler order management system;

expanding in-aisle, real-time mobile learning tools for our associates’ own development and to assist with customer questions;

creating an enhanced order management system;

expanding in-aisle, real-time mobile learning tools for our associates’ development and assistance with customer questions;

and using labor model tools to better align associate activity with customer needs.

For a number of years, our associates have used web-enabled handheld devices to help them more efficiently meet the needs of the business and serve customers.

For a number of years, our Home Depot store associates have used web-enabled handheld devices to help them more efficiently meet the needs of the business and serve customers.

Our current generation of these digital “hdPhone” devices offers enhanced functionality that allows associates to readily query inventory, access applications that support customer service, and assist with locating products.

Our hdPhones also give our U.S.

store associates access to Sidekick, an application that directs associates to bays where product is low or out of stock and helps our associates prioritize the highest value tasks more effectively.

To further support productivity, in fiscal 2023 we rolled out Computer Vision in our U.S.

stores, which provides greater visibility into where product is located, including both on the shelves and in the overhead space, enabling strategically-directed tasking and improving on-shelf availability.

Home Depot store associates access to Sidekick, an application that directs associates to bays where product is low or out of stock and helps our associates prioritize the highest value tasks more effectively.

To further support productivity, we leverage Computer Vision in our U.S.

Home Depot stores, which provides greater visibility into where product is located, including both on the shelves and in the overhead space, enabling strategically-directed tasking and improving on-shelf availability.

Investing in Safety.

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and departmental merchandising safety standards.

Fiscal 2024 Form 10-K

OUR SUPPLY CHAIN

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Our efforts are focused on ensuring product availability and increasing the speed and reliability of delivery for our customers while managing our costs.

Our supply chain investments have helped us to operate effectively and meet our customers’ needs, even with the challenging environment over the past few years.

We centrally forecast and replenish the vast majority of our store products through sophisticated inventory management systems and utilize our network of distribution centers to serve both our stores’ and customers’ needs.

Our supply chain investments have helped us to operate effectively and meet our customers’ needs, even with the challenging economic environment over the past few years.

We centrally forecast and replenish the vast majority of our Home Depot store products through sophisticated inventory management systems and utilize our network of distribution centers to serve both our stores’ and customers’ needs.

Our supply chain includes multiple distribution center platforms in the U.S., Canada, and Mexico tailored to meet the needs of our stores and customers based on types of products, location, transportation, and delivery requirements.

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In many markets, we offer same day or next day delivery of a multitude of products through our stores and fulfillment centers.

We also have omni-channel fulfillment centers, which deliver product directly to customers, and market delivery operations, which function as local hubs to consolidate freight for dispatch to customers for the final mile of delivery, with a focus on appliances.

We met our goals to control more of our appliance delivery end-to-end and manage all of our appliance delivery volume through our market delivery operations in fiscal 2022, and in fiscal 2023, we continued to invest in these capabilities,

Fiscal 2023 Form 10-K

including expansion of our last mile delivery capacity.

We have also opened additional flatbed distribution centers, which handle large items like lumber and building materials that are transported on flatbed trucks.

We also have omni-channel fulfillment centers that deliver product directly to customers, and market delivery operations that function as local hubs to consolidate freight for dispatch to customers for the final mile of delivery, with a focus on appliances.

We have invested in our capabilities to control more of our appliance delivery end-to-end, manage all of our appliance delivery volume through our market delivery operations, and expand our last mile delivery capacity.

We have also opened additional flatbed distribution centers that handle large items like lumber and building materials that are transported on flatbed trucks.

Our network is designed to create a competitive advantage with unique, industry-leading capabilities for home improvement needs for both our Pros and consumers.

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In addition to our distribution and fulfillment centers, we leverage our stores as a network of convenient customer pickup, return, and delivery fulfillment locations.

Our premium real estate footprint provides a distinct structural and competitive advantage.

For customers who shop online and want to pick up or return merchandise at a store, or have it delivered from a store, we have four interconnected retail programs:

We believe our premium real estate footprint provides a distinct structural and competitive advantage.

For customers who shop online and want to pick up or return merchandise at a store, or have product delivered from a store, we have four interconnected retail programs:

BOSS, BOPIS, BODFS, and BORIS.

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online orders were fulfilled through a store.

We also continue to focus on developing new capabilities to improve both efficiency and customer experience for delivery from our stores.

SRS branch locations throughout the U.S.

also enable deliveries direct to customer job sites on their preferred timelines.

We continue to focus on developing new capabilities to improve both efficiency and customer experience for delivery from our stores and branches.

Our strategic intent is to have a portfolio of efficient, timely and reliable sources and methods of delivery to choose from, optimizing order fulfillment and delivery based on customer needs, inventory locations, and available transportation options.

CORPORATE RESPONSIBILITY AND HUMAN CAPITAL MANAGEMENT

We view corporate responsibility matters through the lens of our business, with an understanding that if we support our associates, our customers, our supplier partners, and the communities we serve, we also support our business and create long-term value for our shareholders.

As a result, we believe that what is commonly called ESG today is fundamentally embedded in our operations and culture.

SUSTAINABILITY AND HUMAN CAPITAL MANAGEMENT

We view sustainability and human capital management matters through the lens of our business, with an understanding that if we support our associates, our customers, our suppliers, and the communities we serve, we also support our business and create value for our shareholders.

Our sustainability and human capital management priorities build on the culture and values on which Home Depot was founded, and our initiatives are embedded in our business strategy and activities.

We organize our efforts around three pillars:

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Highlights of each of these pillars are set forth below.

For further information on our three pillars and other ESG-related matters, see our annual ESG Report, available on our website at https://corporate.homedepot.com/responsibility.

For further information on our three pillars, including related goals, see our 2024 Environmental, Social and Governance Report (the “2024 ESG Report”), available on our investor relations website at https://ir.homedepot.com/sustainability.

Fiscal 2024 Form 10-K

Focus on Our People

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This includes investing in competitive wages and benefits while also providing the culture, tools, training, and development opportunities that make working at The Home Depot an enjoyable and rewarding experience.

These actions are the foundation of our key tenets of putting customers first and taking care of our associates.

These actions are the foundation of our core values of taking care of our associates, entrepreneurial spirit, building strong relationships, and respect for all people.

Culture and Values.

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We empower our associates to deliver a superior customer experience by living our values, and we position our associates to embody our core values by integrating the importance of our culture into ongoing development programs and rewards programs.

Leaders participate in programs designed to

Fiscal 2023 Form 10-K

build and strengthen our culture, such as training on leadership skills, cross-functional collaboration, inclusiveness, and associate engagement, and associates receive training on unconscious bias.

Leaders participate in programs designed to build and strengthen our culture, such as training on leadership skills, cross-functional collaboration, leading with our values, and associate engagement.

Our core values are at the root of our human capital management programs.

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Total 470,100 100%

(1) Includes associates in our sourcing organization located in China, Vietnam, India, Italy, Poland and Turkey.

(1) Includes associates in our sourcing organization located in China, Vietnam, India, Taiwan, Italy, Poland and Türkiye.

Fiscal 2024 Form 10-K

Below is the demographic data for our U.S.

associates as of the end of fiscal 2024:

Associate Population Race/Ethnicity Gender

% Minority % White % Undisclosed % Female % Male % Undisclosed

Workforce 50%

Managers & Above (1)

(1) Does not include officers.

Certain percentages in these tables may not sum to totals due to rounding.

Talent Attraction and Development.

As we attract and hire new associates, we strive to create a customer-like experience for jobseekers by focusing on speed and personalization as they progress through the steps of our recruiting process.

We employ targeted marketing practices through our careers website, which personalizes the user’s experience based on jobseeker location and searching behavior.

Our careers website personalizes the user’s experience based on jobseeker location and searching behavior.

Jobseekers can also apply for roles from anywhere using desktop or mobile devices.

Once a jobseeker has applied for a role and has been selected to move forward in the recruiting process, we provide self-service for many of our positions by allowing candidates to schedule or reschedule pre-hire activities directly from their mobile device.

Lastly, we created a quick hiring process for select roles by matching candidates to jobs that fit their needs.

We offer all of our associates the opportunity to benefit from robust development opportunities.

Once a jobseeker has applied for a role and has been selected to move forward in the recruiting process, we provide self-service for many of our positions by allowing jobseekers to schedule or reschedule pre-hire activities directly from their mobile device.

We offer our associates the opportunity to benefit from robust development opportunities.

Our Home Depot University, or “HDU,” program, is a key part of this development, offering relevant content through multiple platforms, including instructor-led classes, e-learning, mobile learning, and additional online resources.

We also invest in ongoing growth and development by providing coaching through continuous leader support and empowering our associates to learn new skills at their own pace through mobile applications our associates can access at any time.

We equip our leaders with the tools they need to develop themselves and their teams through several programs designed to help them lead inclusively, empower their teams, and serve as mentors for our associates.

We also continue to work to ensure our store leadership structure supports both associate development and engagement as well as alignment across our organization.

In fiscal 2023, we continued to refine the updated store leadership structure established in fiscal 2022, which created new management positions in our stores focused on the customer service experience, increasing the number of managers on the floor at any given time.

This structure frees up time for other store leaders to devote to associate training and development.

The result is an improved customer and associate experience, while also providing new career paths for associates.

In fiscal 2023, we also announced changes to our senior leadership structure to better align the outside sales and service team with the global store organization, so that both outside sales and store associates can better serve our Pros.

We equip our leaders with the tools they need to develop themselves and their teams through several programs designed to help them lead effectively, empower their teams, and serve as mentors for our associates.

We continually assess and refine our leadership structure throughout the organization to allow our associates to focus on training and development and better serve our customers.

Associate Engagement.

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We provide several pulse check surveys to associates throughout the year that help us determine how emotionally connected those associates are to our customers, the Company, their jobs, fellow associates, and leaders.

In addition, our annual Voice of the Associate survey, which includes all associates, serves as our primary means of gauging associates’ level of engagement within their roles.

In addition, our annual Voice of the Associate survey serves as our primary means of gauging associates’ level of engagement within their roles.

We use the feedback from these surveys to help improve the overall associate experience.

We also maintain a digital associate engagement platform that links associates with common interests and fuels connections to co-workers and Company leaders.

We also maintain digital associate engagement platforms that link associates with common interests and fuels connections to co-workers and Company leaders.

Additionally, we have a number of programs to recognize stores and individual associates for exceptional customer service and demonstrating our core values.

Diversity, Equity and Inclusion.

Guided by our core values and grounded in our culture, we believe that having a diverse, equitable and inclusive Company is key to our success.

We strive to maintain a Company where our associates are valued and respected and feel a sense of belonging in the workplace, so that they can provide the customer experience that supports our business and the communities we serve.

Our Office of Diversity, Equity and Inclusion (“DEI”) supports our DEI engagement efforts with our associates, suppliers, and communities.

Fiscal 2023 Form 10-K

Below is the fiscal 2023 demographic data for our U.S.

Associate Population Race/Ethnicity Gender

% Minority % White % Undisclosed % Female % Male % Undisclosed

Workforce 49%

Managers & Above (1)

1% 35% 65% 1%

(1) Does not include officers.

Certain percentages may not sum to totals due to rounding.

As a Company, we have identified several priorities designed to guide our efforts to enhance diversity, equity and inclusion.

We believe these associate-, supplier- and community-focused priorities will further enhance our customers’ experience and make a sustainable difference within the workplace, marketplace, and community:

• Associate Engagement

◦ Consider inclusivity throughout our organization and create an environment where every associate feels included and valued for who they are

◦ Promote equal opportunity in recruitment, hiring, training, development and advancement

• Supplier Diversity

◦ Increase visibility into our spend with diverse suppliers, including diverse subcontractors

◦ Increase the pipeline of diverse suppliers to be considered for engagement

• Community Engagement

◦ Partner with organizations on programs designed to close the wealth gap

◦ Support programs that advance education for all

Respect For All People.

We strive to maintain a culture that welcomes everyone, and we believe it helps us achieve our business goals by driving excellent customer service and innovation, empowering our associates to thrive and excel, and enriching the communities in which we operate.

This includes creating an environment where our associates feel valued and respected and providing equal opportunity for all of our associates.

Compensation and Benefits.

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We continuously make wage investments to ensure our compensation packages reflect the evolving circumstances across our markets.

Our profit-sharing program for hourly associates also provides semi-annual cash awards for performance against our business plan.

Our profit-sharing programs for hourly associates also provide awards for performance against our business plan.

Our associates can take advantage of a range of benefits, including healthcare and wellness programs, vacation and leave of absence benefits, including parental leave and paid sick/personal time off, a 401(k) match, our ESPPs, personal finance education and advisory services, assistance programs to help with managing personal and work-life challenges, family support programs, and educational assistance.

Fiscal 2024 Form 10-K

Operate Sustainably

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to our supply chain and packaging initiatives;

to our ethical sourcing program.

As we strive to operate sustainably, we have focused on efforts that help protect the climate, reduce our environmental impact, and source products responsibly, and we have set goals to drive progress in these areas.

Our 2023 ESG Report, available on our website at https://corporate.homedepot.com/responsibility, includes more information on our goals, as well as specific initiatives we have in place to help achieve these goals.

In order to progress against our goals to reduce our environmental footprint, we have a number of environmentally focused programs and initiatives.

Science-Based Targets for Emissions Reductions.

In fiscal 2023, we submitted new reduction goals to the Science Based Targets initiative (SBTi) to reduce Scope 1, 2 and 3 emissions in line with the Paris Agreement goals, and we further enhanced our goal for Scope 3 emissions reductions in early fiscal 2024.

We now plan to reduce our combined absolute Scope 1 and 2 emissions and our absolute Scope 3 Category 11 (“Use of Sold Products”) emissions by 42%, each by the end of fiscal 2030 from a fiscal 2020 base year.

The SBTi has validated that our enhanced goals conform with its criteria and has determined that our Scope 1 and 2 target is in line with a 1.5-degree Celsius trajectory.

Adoption of these SBTi-approved goals builds on and supersedes our previous science-based goals to reduce Scope 1 and 2 carbon emissions by 2.1% per year, to achieve a 40% reduction by the end of fiscal 2030 and a 50% reduction by the end of fiscal 2035.

Fiscal 2023 Form 10-K

Store Operations and Renewable/Alternative Energy.

We have reduced U.S.

store electricity consumption through initiatives such as LED lighting upgrades;

installation of energy-efficient HVAC systems;

and participation in demand mitigation.

We have also invested in on-site alternative or renewable energy projects such as fuel cells and solar panels and contracts with off-site wind and solar power providers.

We have continued to work toward our goal to produce or procure renewable electricity equivalent to the electricity needs for all Home Depot facilities by the end of fiscal 2030.

Product Offerings.

Through our Eco Actions TM program, we have helped our customers more easily identify products related to five areas:

carbon emissions, circularity, responsible chemistry, sustainable forestry, and water use.

Under our Eco Actions program, we sell ENERGY STAR ® certified appliances;

WaterSense ® -labeled bath faucets, showerheads, aerators, toilets, and irrigation controllers;

LED light bulbs;

tankless water heaters;

and many other products.

These products, through proper use, help our customers save money on their utility bills and reduce their environmental impact, and in fiscal 2023 we set new goals for customer savings on energy costs and reduced water usage through purchases of these products.

In fiscal 2023, we also announced a goal that by the end of fiscal 2028, 85% of our U.S.

and Canada in-store and online sales of push mowers and handheld outdoor power equipment will be powered by rechargeable battery technology.

Through Eco Actions, we also provide customers with resources, such as project tutorials, to take individual action on environmental issues.

In-Store Recycling Programs.

We offer customer-facing recycling programs in the U.S., including in-store recycling programs for compact fluorescent light bulbs, rechargeable batteries, and lead acid batteries.

Chemical Strategy.

We are committed to increasing our assortment of products that meet high environmental standards, and we encourage our suppliers to invest in developing environmentally innovative products.

We periodically evaluate our Chemical Strategy to ensure our approach and goals are appropriate.

In fiscal 2023, we updated our Chemical Strategy to include a new goal to not allow added PFAS (Perfluoroalkyl and Polyfluoroalkyl Substance) chemicals in our new private-brand patio and home décor products sold in our U.S.

and Canada stores by the end of fiscal 2025.

Sustainable Packaging.

In addition to our goal related to eliminating expanded polystyrene foam (EPS) and polyvinyl chloride (PVC) film from new packaging for our private-brand products sold in U.S.

and Canada stores and online, we are continually working with our suppliers to find ways to make product packaging more recyclable or simply use less material, such as through the reduction of single-use plastics.

In fiscal 2023, we also announced a new goal that all private brand fiber packaging for new SKUs in our U.S.

and Canada stores and online will be compostable, recyclable or recycled content by the beginning of fiscal 2027.

Supply Chain Optimization.

Through our supply chain initiatives such as space sharing and optimization technology, we are working to maximize our use of every mile to make our supply chain more efficient.

CDP Participation.

We are a long-standing participant in the annual CDP Climate Change disclosure process.

CDP is an independent, international, not-for-profit organization providing a global system for companies and cities to measure, disclose, manage, and share environmental information.

In February 2024, we received a score of “A-” from CDP on our Climate Change submission, reflecting leadership and an improved level of action on climate change.

We began participating in CDP’s Forests disclosure process in fiscal 2023, receiving a score of “C” on our first submission, indicating awareness of how these issues intersect with our business.

Over the past several years, our commitment to sustainable operations has resulted in a number of environmental awards and recognitions.

In 2023, we received the following awards:

an EPA WaterSense ® Partner of the Year Award for our commitment to offering and promoting water-efficient products;

an EPA Safer Choice Partner of the Year Award, which recognizes achievement in products with safer chemicals that furthers innovative source reduction;

and an EPA ENERGY STAR ® Partner of the Year Award for our contribution to promoting energy efficiency.

to our responsible sourcing program.

As we strive to operate sustainably, we focus on sourcing products responsibly, protecting our business operations from climate-related risks, and reducing our environmental impact.

Strengthen Our Communities

One of our core values is “Giving Back,” and we support our communities in a number of ways.

The Home Depot Foundation focuses on improving the homes and lives of U.S.

The Home Depot Foundation, a nonprofit supported by Home Depot, focuses on improving the homes and lives of U.S.

veterans, assisting communities affected by natural disasters, and training skilled tradespeople to fill the labor gap.

The Company and The Home Depot Foundation are partnering with industry leaders on training programs to train the next generation of skilled tradespeople and help them find careers in the home improvement industry through our Path to Pro program, which includes a career networking site to connect skilled tradespeople to industry Pros.

The Company and The Home Depot Foundation are partnering with industry leaders on training programs to train the next generation of skilled tradespeople and help them find careers in the home improvement industry through our Path to Pro programs, which include a career networking site to connect skilled tradespeople to industry Pros.

Our Team Depot associate volunteers also extend the mission of The Home Depot Foundation in communities across the country, donating thousands of volunteer hours each year to serve the needs of our communities.

Fiscal 2023 Form 10-K

We partner with a variety of suppliers and organizations to further support our DEI efforts.

As noted above, our Office of DEI partners with community organizations on programs designed to close the wealth gap and enhance education outcomes across a broad range of communities.

We are working to cultivate a supplier base that creates long-lasting growth and mutual business success, while strengthening the communities in which our customers and associates live.

Please see our 2023 ESG Report for additional information about our efforts to support the communities we serve.

We also partner with a variety of suppliers and organizations to further support our efforts to strengthen the communities in which our customers and associates live.

GOVERNMENT REGULATION

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AVAILABLE INFORMATION

Our internet website is www.homedepot.com.

We make available on the Investor Relations section of our website, free of charge, our Annual Reports to shareholders, Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy Statements, and Forms 3, 4 and 5, and amendments to those reports, as soon as reasonably practicable after filing such documents with, or furnishing such documents to, the SEC.

Our primary internet website is www.homedepot.com.

We make available on the Investor Relations section of our website, free of charge, our Annual Reports to shareholders, Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy Statements, and Forms 3, 4 and 5 for our directors and certain of our officers, and amendments to those reports, as soon as reasonably practicable after filing such documents with, or furnishing such documents to, the SEC.

We include website addresses throughout this report for reference only.

The information contained on these websites is not incorporated by reference into this report.

The information contained on these websites, including any document posted on or accessible through them, is not incorporated by reference into this report.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business