What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2026-03-18 compared with 2025-03-21 · 137 added, 136 removed, 171 unchanged (61% of the section changed)

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is the world’s largest home improvement retailer based on net sales for fiscal 2025.

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 offer our customers a wide assortment of home improvement products, building materials, 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.

As of the end of fiscal 2024, we operated 2,347 stores located throughout the U.S.

As of the end of fiscal 2025, we o perated 2,359 stor es located throughout the U.S.

(including the Commonwealth of Puerto Rico and the territories of the U.S.

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The Home Depot stores average approximately 104,000 square feet of enclosed space, with approximately 24,000 additional square feet of outside garden area.

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.

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

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.

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

In fiscal 2025, SRS completed the acquisition of GMS, a leading distributor of specialty building products, including drywall, ceilings, steel framing and other complementary construction products.

At the end of fiscal 2025, SRS, which includes GMS, operated over 1,250 locations throughout the U.S.

and Canada, most of which have a distribution center, material handling and delivery equipment, and inventory.

Following the GMS acquisition, SRS is organized as four different lines of business:

roofing and building products, interior and construction products, landscape, and pool.

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

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Our telephone number at that address is (770) 433-8211.

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

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:

• We intend to provide the best customer experience in home improvement and develop differentiated capabilities for our customers;

• We intend to extend our position as the low-cost provider in home improvement;

• We intend to be the most efficient investor of capital in home improvement.

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

The Home Depot is focused on leveraging its distinct competitive advantages – our brand, excellent customer service, product authority in home improvement, knowledgeable associates and culture, scale, premier real estate portfolio, digital and interconnected experience, supply chain network, and our deep relationships with Pros – to take advantage of the significant growth opportunities in the highly fragmented markets in which we operate.

In fiscal 2025, we strategically invested across our business to advance our growth strategy:

• Drive our core and culture by supporting our associates so that they can deliver the best customer experience in home improvement;

• Deliver a frictionless interconnected customer experience, regardless of whether our customers choose to engage and shop with us in-store or through our digital properties;

• Win with Pros through our differentiated value proposition and ecosystem of capabilities.

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

Driven by our core values, our Inverted Pyramid model reminds us who matters most – our customers and our associates.

These values, embedded in our culture since the Company’s founding, continue to guide us as our business evolves.

Fiscal 2025 Form 10-K

DELIVER SHAREHOLDER VALUE

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• First, we intend to reinvest in our business to drive growth faster than the market.

• Second, after meeting the needs of the business, we look to pay a quarterly dividend.

• Second, after reinvesting in the business, we look to pay a quarterly dividend.

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

Fiscal 2024 Form 10-K

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.

In fiscal 2025, we invested $3.7 billion in capital expenditures across initiatives supporting our strategy of driving our core and culture, including building new stores and maintaining existing stores, delivering a frictionless, interconnected experience, and winning with Pros.

SRS also acquired GMS to accelerate the vision of becoming a leading, multi-category building materials distributor.

We continue to focus on driving productivity throughout the business, including by leveraging technology to drive efficiency in freight flow management, supply chain optimization, and streamlining central processes.

By reinvesting in our business to drive growth and productivity, we are able to improve the customer experience, increase our competitiveness in the market, and deliver shareholder value.

In fiscal 2025, we returned $9.2 billion to shareholders in the form of cash dividends, following a 2.2% increase in our quarterly cash dividend from $2.25 per share to $2.30 per share announced in February 2025.

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

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These customers are typically homeowners who purchase products and complete their own projects and installations.

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

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

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, 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.

As the preferences and behaviors of our DIY customers change, we are continuing to invest in capabilities to better meet their evolving expectations.

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

These customers build, renovate, remodel, repair, and maintain residential properties, multifamily properties, hospitality properties, and commercial facilities, including educational, healthcare, governmental, institutional, and office buildings, as well as data centers.

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

We remain focused on providing a customized digital experience tailored to Pros’ needs, a dedicated sales force, a broad and deep 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 all Pros, we are continuing to invest in differentiated capabilities that will help us better serve our Pros’ needs, including differentiated fulfillment options, preferred pricing, additional trade credit offerings including our Pro Trade Credit program, more convenient locations and showroom space, and technology tools designed to streamline order management and project planning and management.

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 differentiated fulfillment options, additional trade credit offerings including our Pro House Account program, more showroom space, and an enhanced order management system.

The acquisition of GMS by SRS in fiscal 2025 further expanded our ability to serve Pros by adding specialty interior building products such as wallboard, ceilings, steel framing and complementary products for residential and commercial projects.

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.

We believe these investments in differentiated capabilities support our goal to serve as the preferred partner for our Pros across their entire project, giving them the choice to streamline their purchasing to optimize efficiency and complete their jobs on time and on budget.

Fiscal 2025 Form 10-K

DIFM Customers

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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.

DIFM customers can purchase these services in our stores, online, or in their homes through in-home consultations.

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

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

OUR PRODUCTS AND SERVICES

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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;

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

homedepot.ca and homedepot.com.mx, our websites in Canada and Mexico, respectively;

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

constructionresourcesusa.com, our website for design-oriented surfaces, appliances and architectural specialty products for Pros;

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.

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.

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 suppliers.

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

Our merchandising organization delivers product innovation, assortment and value, which reinforces our position as the product authority in home improvement and is one of our distinctive competitive advantages.

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

The strong strategic relationships that our merchandising organization builds with our vendors position us to deliver on our goals for our customers and offer a compelling business proposition for these market-leading suppliers.

As part of our focus on product differentiation, we have formed strategic alliances and exclusive relationships with certain suppliers to market products under a variety of well-recognized brand names.

We have also developed relationships with certain suppliers to allow us to offer proprietary products that are comparable to national brands.

These proprietary products help differentiate us from other retailers and generally carry higher margins than national brand products.

To keep pace with changing customer expectations and increasing desire for innovation, localization, and personalization, we continue to invest in tools to better leverage our data and drive a deeper level of collaboration with our suppliers.

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;

(1) enhance an interconnected shopping experience 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 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.

We also provide tool and equipment rentals at locations across the U.S.

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 tool rental locations, more tools, and better technology.

We also provide tool and equipment rentals at many locations, providing value and convenience for both Pros and consumers.

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

Sourcing and Quality Assurance

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and around the world.

For many years, we have worked to diversify our global supply chain.

During fiscal 2025, in addition to our U.S.

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.

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

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.

Fiscal 2025 Form 10-K

non-Canada and non-U.S.

suppliers of private branded and direct import products.

Our 2024 Responsible Sourcing Report, available on our website at https://corporate.homedepot.com under “Responsibility > Sourcing Responsibly,” provides more information about this program.

Our 2025 Responsible Sourcing Report, available on our Investor Relations website at https://ir.homedepot.com under “Sustainability,” provides more information about this program.

In addition, we have both quality assurance and engineering resources dedicated to establishing criteria and overseeing compliance with safety, quality, and performance standards for our private branded 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.

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

We continuously assess our merchandising departments and product lines for opportunities to expand the assortment of products offered within The Home Depot’s portfolio of proprietary and exclusive brands.

We regularly assess our merchandising departments and product lines for opportunities to expand the assortment of products offered within The Home Depot’s portfolio of proprietary and exclusive brands.

COMPETITION AND SEASONALITY

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.

As a result, we face competition for customers for our products and services from a variety of retailers (including those operating reseller marketplaces), suppliers, service providers, 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;

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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.

Online and other digital capabilities, as well as AI tools, facilitate 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;

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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, and our interconnected retail strategy.

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

Furthermore, with respect to delivery options, customers are seeking faster and/or guaranteed delivery times, real-time updates on delivery status, 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, as described more fully under “Our Supply Chain” below, and our interconnected strategy.

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, 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.

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 mobile applications and websites to enhance the customer experience.

When we discuss the “interconnected experience,” we are referring to our customers’ many touchpoints across our physical and digital assets throughout their entire shopping journey.

Home Depot is primarily a project retailer, and it is our goal to help customers solve problems across their entire project.

We aim to provide the best experience across our physical and digital assets, throughout the entire shopping journey from inspiration to post-purchase support, and we believe that engagement with customers across different touchpoints has driven increases in sales.

Fiscal 2025 Form 10-K

Digital Experience

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.

Enhancements to our digital platforms are critical for our increasingly interconnected customers, who often research products and check available inventory online before visiting 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, or following a visit to one of our stores, 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 presence and the frictionless interaction of our digital capabilities.

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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.

In addition to supporting our DIY and DIFM customers throughout their shopping journeys, our mobile applications and other digital tools can also help serve the needs of Pros, including those working on complex projects.

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

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 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;

rather, we believe it encompasses an entire journey from inspiration and know-how, to purchase and fulfillment, to post-purchase care and support.

Customers expect more personalized messaging, so we are continuing to focus on connecting marketing activities with the online and in-store experiences to create seamless engagement across channels.

In addition, we are leveraging AI tools to improve our search, recommendations, and chat features, and offering new AI-powered customer-facing tools such as Magic Apron TM , which supports customers and associates with online product and project inquiries, and our AI-powered Blueprint Takeoffs Tool and Material List Builder, which generate project-specific materials lists and quotes.

We believe our focus on improving search capabilities, digital functionality, category presentation, product content such as customer product review summaries, project inspiration and support, 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 to effectively meet their expectations.

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

rather, we believe it encompasses an entire journey from inspiration and know-how, to purchase and fulfillment, to post-purchase support.

Customers continue to expect more personalized messaging, and we remain focused on connecting marketing activities with the online and in-store experiences to create seamless engagement across channels.

From the inspirational point of the purchase journey to providing product know-how, we continue to invest in the infrastructure and capabilities needed to deliver the most relevant marketing messages to our customers based on what is important to them today.

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Our stores remain the hub of our business, and we continue to invest to improve the customer shopping experience through easier navigation and increased convenience and speed of checkout.

In fiscal 2024, we continued to leverage the investments made in our stores over the past several years to operate effectively and meet customer expectations.

These investments included wayfinding signage and store refresh packages;

self-service lockers, online order storage areas and curbside service to enable convenient online order pickup options;

electronic shelf label capabilities;

and the re-design of front-end areas, including reconfigured service desks, improved layouts in checkout areas, and expanded and enhanced self-checkout options.

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

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

In fiscal 2025, we continued to leverage the investments made in our store experience over the past several years to operate effectively and meet customer expectations, as well as investing in dedicated teams to better meet the needs of our Pros in-store.

We have also empowered our customers with additional self-help tools, including mobile application-enabled store navigation and Magic Apron.

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

We also recognize that another critical part of delivering an excellent customer experience in the store is having products on our shelves, and we have enhanced our use of technology such as Computer Vision, which provides greater visibility into where product is located, including both on shelves and in the overhead space, enabling us to drive higher on-shelf availability.

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.

We continually strive to improve our store operations to remove complexity and inefficient processes, allowing our associates to spend more of their time serving our customers.

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 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 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.

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 2025, w e opened 12 new s tores .

We expect to complete this goal of approximately 80 new stores in fiscal 2027, after which point we plan to open approximately 15 to 20 new stores per year.

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

Investing in the Associate Experience.

We continually strive to improve our store operations by removing complexity and inefficient processes, allowing our associates to spend more of their time serving our customers.

To this end, we have continued to focus on process improvements like optimizing product flow to improve on-shelf availability and reduce the amount of time store associates spend locating products, as well as expanding in-aisle, real-time mobile learning tools for our associates’ development and assistance with customer questions.

Our associates are also using web-enabled handheld devices to help them more efficiently meet the needs of the business and serve customers.

These digital “hdPhone” devices offer enhanced functionality that allows associates to readily query inventory, access applications that support customer service, and assist with locating products.

Fiscal 2025 Form 10-K

hdPhones also give our U.S.

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.

In addition, we are using labor model tools to better align associate activity with customer needs.

This includes transitioning more of our store tasking to our merchandising execution team (MET), leveraging MET associates’ expertise to reinforce in-aisle associates’ focus on excellent customer service.

Investing in Safety.

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We use data to identify areas of greatest risk, including emerging risks, and invest in tools, equipment and technology to reduce those risks in our packaging, processes, and behaviors.

Our associate training and awareness initiatives target individual roles and responsibilities, integrating with overall strategies that promote physical and psychological safety and mental wellness.

Our associate training and awareness initiatives target individual roles and responsibilities, integrating with overall strategies that promote physical and psychological safety and emotional wellness.

We empower trained EH&S associates to continuously evaluate, develop, implement and enforce policies, processes and programs in our stores, facilities and offices across the Company.

Our EH&S policies are woven into our everyday operations for site, district and regional teams, and integrate with operating platforms to provide safety line-of-sight to all leaders and associates.

Our EH&S policies are woven into our everyday operations for site, district and regional teams, and integrate with operating platforms to provide safety line-of-sight to associates and their leaders.

Common program elements include daily store inspection checklists;

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and departmental merchandising safety standards.

Fiscal 2024 Form 10-K

OUR SUPPLY CHAIN

We continue to focus on building best-in-class competitive advantages in our supply chain to be responsive to our customers’ expectations for how, when and where they choose to receive our products and services.

As part of enhancing the interconnected shopping experience, we continue to invest in our supply chain network, with the goal of achieving the fastest, most efficient and most reliable delivery capabilities in home improvement.

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 economic environment over the past few years.

As part of enhancing the interconnected experience, over the past several years, we have invested in our supply chain network with the goal of achieving the fastest, most efficient and most reliable delivery capabilities in home improvement.

With that investment now largely complete, our supply chain initiatives have positioned us to operate effectively and meet our customers’ needs for product availability and fast, reliable delivery.

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.

These include rapid deployment centers, stocking distribution centers, bulk distribution centers, flatbed distribution centers, and direct fulfillment centers, among others.

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

These include rapid deployment centers, stocking distribution centers, bulk distribution centers, FDCs, and direct fulfillment centers, among others.

Over the past several years, we have invested to further automate and mechanize our rapid deployment center network to drive greater efficiency and faster movement of product.

We are also continuing to enhance our supply chain network with our expanded fulfillment facilities designed to drive speed and reliability of delivery for our customers.

We have also enhanced our supply chain network with our expanded fulfillment facilities designed to drive speed and reliability of delivery for our customers.

Our 'ship from best location' initiative seeks to optimize delivery speed, reliability, cost, and capacity by leveraging machine learning algorithms to route orders to the optimal fulfillment node.

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 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.

We have 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.

Because we typically do not stock appliances in our facilities, we have invested in our capabilities to control more of our appliance delivery end-to-end, manage our appliance delivery volume through our market delivery operations, and expand our last mile delivery capacity.

We have also opened FDCs that handle large items like lumber and building materials transported on flatbed trucks.

We are deploying a new delivery method called FDC Relay, which leverages our existing FDCs to enhance our performance in our current FDC markets and broadens our reach across a greater number of markets.

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.

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:

We believe our premium real estate footprint provides a distinct 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 offer a variety of options:

BOSS, BOPIS, BODFS, and BORIS.

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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.

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

Fiscal 2025 Form 10-K

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.

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Highlights of each of these pillars are set forth below.

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

For further information on our three pillars, including related goals, see our Fiscal 2024 Living Our Values Report, available on our investor relations website at https://ir.homedepot.com/sustainability.

Focus on Our People

Our culture and our associates provide intangible and hard-to-replicate competitive advantages, which have been key to helping us navigate challenging market conditions.

Our associates are essential to providing the experience and service that our customers demand.

Our associates are essential to providing the experience and service that our customers expect.

To preserve and protect that customer experience, we focus on cultivating a compelling associate experience, which we believe supports our ability to attract and retain our associates.

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 core values of taking care of our associates, entrepreneurial spirit, building strong relationships, and respect for all people.

These actions are the foundation of our core values of Taking Care of our People, Entrepreneurial Spirit, Building Strong Relationships, and Respect for all People.

Culture and Values.

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

Fiscal 2025 Form 10-K

Our Workforce.

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Total 472,400 100%

(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.

Certain percentages may not sum to totals due to rounding.

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

Additional information regarding our workforce, including the demographic data for our U.S.

associates, can be found in our Fiscal 2024 Living Our Values Report, available on our investor relations website at https://ir.homedepot.com/sustainability.

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.

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.

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

Jobseekers can 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 jobseekers to schedule or reschedule pre-hire activities directly from their mobile device.

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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 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.

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

Associate Engagement.

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It is vital to our culture and to our success.

We create an engaging workplace by continuously listening to and acting on associate feedback.

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

We foster an engaging workplace by continuously listening to and acting on associate feedback.

Throughout the year, we provide several pulse check surveys to our associates that help us understand how emotionally connected those associates feel to our customers, the Company, their jobs, fellow associates, and leaders.

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

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

We also maintain digital associate engagement platforms that can connect associates with common interests and fuel 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.

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Consistent with our core values, we take care of our people by offering competitive compensation and comprehensive benefits programs.

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

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

For instance, in Fiscal 2025, we made a significant investment in our people by increasing equity awards to our field leadership, including store managers and assistant store managers.

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

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to our supply chain and packaging initiatives;

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.

and to our responsible sourcing program.

As we strive to operate sustainably, we focus on sourcing products responsibly, driving innovation, 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, 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 programs, which include a career networking site to connect skilled tradespeople to industry Pros.

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

veterans, assisting communities affected by natural disasters, and helping prepare more people for careers in the skilled trades.

The Company and The Home Depot Foundation partner with industry leaders through our Path to Pro programs on training programs to develop the next generation of skilled tradespeople and help them find careers in the home improvement industry, which includes a Home Depot-powered career networking site to connect jobseekers with Pros looking to hire skilled tradespeople.

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.

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.

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

GOVERNMENT REGULATION

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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 make available on the Investor Relations section of our website, free of charge, our filings with the SEC.

These filings include 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, including any document posted on or accessible through them, is not incorporated by reference into this report.

The information contained on our 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