Home Depot to Raise Worker Pay as 2022 Profit Tops $17B - Modern Distribution Management

Log In

Home Depot to Raise Worker Pay as 2022 Profit Tops $17B

Sales for 4Q 2022 were $35.8 billion, an increase of $112 million (or 0.3%) from the same quarter a year before.
Credit: The Home Depot

On Feb. 21, The Home Depot announced its 2022 fourth-quarter and full-year earnings — along with a note that it plans to raise wages for many of its workers, according to a company news release.

Fourth-quarter sales were $35.8 billion, an increase of $112 million or just 0.3% from 4Q 2021. Comparable sales for 4Q 2022 decreased 0.3%, and comparable sales in the U.S. also decreased 0.3%, the company said.

Net earnings for 4Q 2022 were $3.4 billion, or $3.30 per diluted share, compared with net earnings of $3.4 billion, or $3.21 per diluted share, in the same period a year prior.

For 2022 overall, sales were $157.4 billion, an increase of $6.2 billion, or 4.1% from 2021. Comparable sales for 2022 increased 3.1%, while comparable sales in the U.S. increased 2.9%, the company said.

Net earnings for 2022 were $17.1 billion, or $16.69 per diluted share, compared with net earnings of $16.4 billion, or $15.53 per diluted share in 2021.

“Fiscal 2022 was another record year for The Home Depot as our team continued to successfully execute in a challenging and dynamic environment,” said Ted Decker, Chair, President and CEO of The Home Depot. “Our ability to deliver growth on top of the $40 billion of sales growth achieved over the prior two-year period, while navigating persistent inflation, ongoing global supply chain disruptions, and a tight labor market, is a testament to investments we have made in the business, as well as our associates’ relentless focus on our customers. I would like to thank our associates and our many partners for their hard work and dedication to our customers.”

The Home Depot also announced that it will invest in wage, benefits, training and career development for many of its associates. Beginning in the first quarter of 2023, the company plans to invest an approximately $1 billion in annualized compensation for frontline, hourly associates.

“The most important investment we can make is in our people,” Decker said. “We believe this investment will position us favorably in the market, enabling us to attract and retain the level of talent needed to sustain the customer experience we strive to deliver.”

In its 2023 guidance, The Home Depot predicts sales growth and comparable sales growth will be approximately flat compared to 2022.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.