Home Depot announced its fourth quarter and fiscal 2022 results, which showed an increase of $112 million in sales compared to the same quarter in fiscal 2021. The company also reported a record year, with sales growth of $40 billion over the last two years. In fiscal 2022, Home Depot’s sales increased by $6.2 billion or 4.1% from the previous year.
The company’s chair, president and CEO, Ted Decker, praised the team’s execution in a challenging and dynamic environment, citing the team’s relentless focus on the customers. To maintain this customer-centricity, the company plans to invest in wage, benefits, training, and career development for its associates. Home Depot aims to invest approximately $1 billion in annualized compensation for frontline, hourly associates, beginning in the first quarter of fiscal 2023.
Decker said, “The most important investment we can make is in our people. 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.”
The $1 billion investment in hourly workers is increasing their average starting salary to $15 an hour. The increase went into effect on Feb. 6 and will be reflected in the paychecks of all hourly workers in the U.S. and Canada. By increasing its minimum wage, Home Depot is joining the ranks of other large employers such as Walmart, Amazon, and Target who have raised their minimum wages amidst a nationwide shortage of front-line workers. Walmart announced an average hourly wage of more than $17.50 while Amazon stated that the starting pay for warehouse and delivery workers would be more than $19 an hour. Last year, Target invested $300 million in hourly wage increases.
The increase in compensation is the company’s way of acknowledging the importance of its associates and ensuring that they are fairly compensated for their work. The investment is expected to enable the company to attract and retain the best talent, which will help maintain its position as the world’s largest home improvement retailer.
As a testament to the company’s success, Home Depot increased its quarterly dividend by 10%, which will be paid to shareholders on March 23, 2023. The company’s board of directors approved the increase, which brings the quarterly dividend to $2.09 per share. This is the 144th consecutive quarter that the company has paid a cash dividend.
Home Depot’s investment in its associates shows its commitment to providing a better work environment and acknowledging the importance of its employees. The company is expected to continue to grow in the coming years, with a plan to expand its offerings and strengthen its position in the market. With its investment in its employees, Home Depot aims to remain the leading home improvement retailer in the world.