Home Depot Reports Record 3rd Qtr Results - Raises Full Year
Earnings Guidance
11/18/2003
Today Home Depot reported record third quarter results. We
recommended this company in May of this year and the stock
has increased 22% in value (an annualized rate of 44%). Meanwhile,
the S&P 500 is only up 12.%. The company's press release
follows:
ATLANTA, Nov 18,
2003 /PRNewswire-FirstCall via Comtex/ -- The Home Depot(R),
the world's largest home improvement retailer, today reported
record third quarter net earnings of $1.15 billion ($0.50
per diluted share) for fiscal 2003, compared with net earnings
of $940 million ($0.40 per diluted share) in the third quarter
of fiscal 2002. Sales for the quarter increased 14.7 percent
to $16.6 billion compared with the third quarter of fiscal
2002. Comparable store sales increased 7.8 percent, the company's
best quarterly comp performance since the fourth quarter of
1999.
The Home Depot reiterated its annual sales
growth guidance of 9-12 percent and raised its full year earnings
per share growth guidance to 15-17 percent for the 2003 fiscal
year.
"Home Depot grew its share of the home
improvement industry this quarter, as our sales increased
by $2.1 billion, more than any other home improvement retailer,"
said Bob Nardelli, chairman, president and CEO of The Home
Depot. "Our customers are experiencing a better shopping
environment as a result of the significant progress we are
making in every area of our business. Our continued focus
on sales, service and execution is resulting in innovative
and distinctive product selection, compelling values, and
knowledgeable store associates. Customers know that The Home
Depot continues to be the leader in home improvement and our
financial results are proof positive that our strategy is
working."
"We saw strength across the country
and across the majority of our selling departments. In some
of our most competitive markets we posted double-digit comps
driven by growth in the number of customer transactions and
the amount of the average ticket," added Nardelli.
Customer transactions grew to 313 million
for the quarter, up 9.4 percent from the third quarter last
year. The company continues to place a high priority on improving
customer service through advances in technology. At the end
of the quarter, 760 stores had self-checkout stations, with
more than 40 million transactions completed during the quarter.
"Customer transactions through self-checkout
are expected to top 100 million during the first week in December
demonstrating strong customer acceptance. This technology
allows us to redeploy associates to assist customers throughout
the store," said Nardelli.
The average ticket grew 4.9 percent to $52.10
from one year ago, the highest average ticket in the company's
history. Average ticket increased across the store in categories
including lumber, appliances, outdoor power equipment and
building materials. According to The Stevenson Company, The
Home Depot sequentially increased its core appliance share
more than any other top competitor in the quarter.
The full press release can be found at HomeDepot.com.
Source: Home Depot
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