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ATLANTA – The Home Depot reported Tuesday record third-quarter fiscal 2004 net earnings of $1.3 billion, or $0.60 per diluted share, up 20 percent compared to $0.50 per diluted share for the third quarter fiscal 2003. Sales for the period increased $2.2 billion, or 13.1 percent, to $18.8 billion and comparable store sales rose 4.5 percent.
All of this is good news for investors, as the company announced it is raising its fiscal 2004 earnings-per-share growth guidance from 14 to 17 percent to 19 to 20 percent, based on third-quarter results.
“The strength of our core retail business, coupled with our growing services and professional supply businesses, is delivering solid returns,” says Bob Nardelli, chairman, president & CEO of The Home Depot. “Our business strategy of enhancing the core, extending the business and expanding our markets is clearly driving consistent, profitable sales growth. Additionally, in the face of a record number of hurricanes in the Southeast, our stores remained open and our associates and suppliers worked tirelessly to take care of our customers, and I want to thank them.”
John Costello, executive vice president of merchandising and marketing adds that continued product innovation has been one driver for the company’s success. Such merchandising efforts include some products in which landscape contractors would be interested, such as Charmglow outdoor fireplace products, RIDGID titanium-coated saw blades and Trex composite decking. Additionally, The Home Depot expanded its Tool Rental Center network, opening the 1,000th location this year.
Executives also note that expanding markets have boosted revenue for the quarter. As reported by Lawn & Landscape in May, The Home Depot acquired White Cap Construction Supply, a distributor of specialty hardware, tools and materials targeting large- and medium-sized construction contractors. The company says that since acquisition, which provides a platform for future growth to a $400 billion market of large- and mid-sized professional contractors, White Cap has made three of its own “bolt-on” acquisitions and also has grown organically by adding seven branches, bringing the total to 77 branches in 17 states.
The Home Depot opened 38 new stores during the quarter and currently operates 1,826 stores, as well as 11 The Home Depot Landscape Supply stores and five Home Depot Supply stores.
The Home Depot will conduct a conference call today to discuss information included in this news release and related matters at 9:00 a.m. EST. The conference call will be available in its entirety through a Web cast at http://www.homedepot.com/, and through replay at that site under the investor relations section.