‘23

Annual
Report
Fiscal 2023: A Year of Moderation
Fiscal 2023 was a year of moderation after three years of unprecedented growth in the home improvement market.
It was also a year of opportunity. We focused on several operational improvements to strengthen the business, while
also staying true to the growth opportunities detailed at our Investor and Analyst conference in June of 2023.

During fiscal 2023, total sales declined 3.0 percent to $152.7 billion, compared to fiscal 2022. Fiscal 2023
comparable sales declined 3.2 percent for the total Company and 3.5 percent in the U.S. Our fiscal 2023 net
earnings were $15.1 billion, and earnings per diluted share decreased 9.5 percent to $15.11.

Focused on Strategic Objectives

Over the last several years, we have successfully managed through a dynamic macroeconomic environment,
including inflation and disinflation, higher interest rates, and shifts in consumer spending. Throughout this time, our
strategic priorities have remained the same: deliver the best customer experience in home improvement, develop
differentiated capabilities, and extend our low-cost provider position. Our objectives to grow market share and
deliver exceptional shareholder value also remain unchanged. Fiscal 2023 marked another year of important progress
in support of these priorities and objectives.

We are focused on the execution of our strategies to continue to remove friction from the interconnected experience,
enhance the Pro experience through our ecosystem of capabilities, and grow our store footprint.

Our customers navigate the physical and digital worlds in a truly interconnected way, and for us it is all about
delivering the best shopping experience regardless of how they choose to shop with us. In the last few years, we
have enhanced our digital in-store navigation in our Home Depot app through our store mode feature, transformed
the front end of stores to enable our customers to get in and out of our stores faster, and transitioned 100% of our
appliance delivery to our new market delivery network, which has led to significant improvements in customer
satisfaction. While we have made tremendous progress in removing friction, we are not done. We will continue to
invest to meet our customers when, where, and how they want to shop with us.

We have made significant progress developing our Pro ecosystem, from building out additional fulfillment modes, to
a robust sales organization and digital platform specifically geared at our Pro customers’ needs. We will continue
investing to drive a best in-class experience to support our Pros for all of their project needs, including a new trade
credit offering and an order management system designed to support the planning and execution of a complex
project. Additionally, we completed the acquisition of Construction Resources in fiscal 2023. With showrooms across
the East Coast and Southeast, Construction Resources will provide another avenue through which we can effectively
sell aesthetic products to our Pro customers who are executing complex projects.

The capabilities we are building to better serve more complex Pro project needs also help improve the experience for
Pros shopping in our stores. More Pro jobsite deliveries fulfilled through our distribution centers mean less
congestion in our aisles and more product on hand to satisfy the need of our in-store Pro customers.
We also see an opportunity to drive sales through new store openings. Since 2008, we have driven incredible sales
productivity in our existing store base and have not focused on new stores as a driver of growth. While we will
maintain our focus on sales productivity in the existing stores, we know there are opportunities to increase sales
further by building stores. During our Investor and Analyst conference in June, we announced plans to open
approximately 80 new stores over the next five years, including 13 in fiscal 2023. We will continue to build out our
store footprint in a strategic way by investing in new stores in geographic areas that have experienced significant
population growth, or where it makes sense to relieve pressure on existing high-volume stores.

Extending our Competitive Advantages

In fiscal 2023, we invested approximately $1 billion in incremental annualized compensation for our frontline, hourly
associates. We know that our associates are a key differentiator, and they are essential in helping us sustain an
excellent customer experience. As a result of this investment, we have seen meaningful improvement in our attrition
rates, particularly among our most tenured associates. More consistent staffing levels are resulting in improved
customer service, productivity, and safety.

In addition to associate and other investments, we also drove productivity within the four walls of our store through
multiple initiatives. Our Sidekick application, which was launched at the beginning of fiscal 2023, is key to improving
our on-shelf availability. Powered by machine learning, Sidekick directs associates to key bays where product is low
or out of stock, and helps associates prioritize the highest value tasks more effectively. Computer Vision, which
partners with Sidekick, utilizes technology to do what we previously relied on associates’ eyes to do. Computer
Vision will give us better visibility into product that is on our shelves and overhead, which will further improve our
on-shelf availability and drive sales. These tools have been deployed across all our U.S. stores, and while its early,
they have driven meaningful improvements in our on-shelf availability.

In fiscal 2023, we also made a strategic change to our leadership structure and named Ann-Marie Campbell Senior
Executive Vice President. She has assumed responsibility for outside Pro sales efforts as well as our installation
services business, while continuing to oversee our U.S. stores and operations and our Canada and Mexico business
units. By aligning the outside sales and service business with the global store organization, we are bringing together
our full ecosystem of deep expertise with our newest capabilities to better serve what we believe is one of our largest
growth opportunities, our Pro customer.

Throughout the year our associates displayed strength and resilience, and I want to thank them and our supplier
partners for their hard work and dedication to serving our customers and communities.

As we look to fiscal 2024, we will continue to leverage our distinct competitive advantages to capitalize on
compelling long-term growth opportunities in our space. The investments we have made and will continue to make in
differentiated capabilities throughout the business will deliver a value proposition that we believe is unique in home
improvement, allowing us to grow faster than the market over time and deliver exceptional shareholder value.

Ted Decker
March 13, 2024
 BOARD OF
DIRECTORS

Edward P. Decker Gerard J. Arpey Ari Bousbib

Chair, President and Chief Partner, Emerald Creek Chairman and Chief
Executive Officer Group, LLC Executive Officer, IQVIA
Holdings, Inc.
Director since 2022 Director since 2015
2, 4 Director since 2007
1, 2

Jeffery H. Boyd Gregory D. Brenneman J. Frank Brown

Former Chairman and Chief Executive Chairman, Former Managing Director
Executive Officer, Booking CCMP Capital and Chief Risk Officer,
Holdings, Inc. Advisors, LP General Atlantic LLC

Director since 2016 Director since 2000 Director since 2011

2, 4 Lead Director Financial Expert
1, 2

Albert P. Carey Linda R. Gooden Wayne M. Hewett

Executive Chairman, Former Executive Vice Chairman, Cambrex
Unifi, Inc. President, Information Corporation
Systems & Global Solutions,
Director since 2008 Lockheed Martin Corporation Director since 2014
3, 4 1, 3
Director since 2015
Financial Expert
1, 3

Manuel Kadre Stephanie C. Linnartz Paula Santilli

Chairman and Chief Former President, Chief Executive
Executive Officer, Kollective Chief Executive Officer and Officer, Latin America,
Auto Group Director, Under Armour, Inc. PepsiCo, Inc.

Director since 2018 Director since 2018 Director since 2022

1, 2 1, 3 2, 4

Caryn Seidman-Becker
Chair and Chief Executive
Officer, CLEAR Secure, Inc.

Director since 2022

3, 4

Board of Directors Committee Membership as of 2023 fiscal year end:

1. Audit 2. Finance 3. Leadership Development & Compensation 4. Nominating & Corporate Governance
 LIVING OUR
VALUES

FOCUS ON OPERATE STRENGTHEN OUR

OUR PEOPLE SUSTAINABLY COMMUNITIES

85%
Targeting of our
U.S. & Canadian Sales in The Home Depot Foundation
~ 90% of our U.S. store leaders push mowers and handheld outdoor SURPASSED
started as
lawn equipment will be
HOURLY ASSOCIATES $500 MILLION
BATTERY POWERED in veterans giving since 2011
by the end of 2028

INVESTED AN ESTABLISHED Since 2018, our Foundation’s

ADDITIONAL SCIENCE-BASED PATH TO PRO

program helped train over 41,000
~ $1 BILLION TARGETS participants and
in annualized compensation for to reduce our
emissions across Scopes 1, 2 introduced over 200,000 people
our frontline, hourly
& 3 by the end of 2030 to the skilled trades
associates

NYSE: HD

The Home Depot, Inc.

2455 Paces Ferry Road, Atlanta, GA 30339-4024
(770) 433-8211
http://ir.homedepot.com