Analyst Expects Home Depot To Slow Growth

Atlanta, GA, January 28, 2008--An analyst said that Home Depot will slow growth and boost spending to maintain existing outlets this year, according to published reports.

After a meeting with Home Depot executives, Sanford Bernstein analyst Colin McGranahan projected that Home Depot, which has slowed store openings in recent years, would open 76 new stores in 2008. But he noted that a range of 40-60 is possible, along with some store closings.

Home Depot last year said it would close two flooring stores and 11 Landscape Supply to refocus on its core warehouses.

McGranahan said the home improvement retailer will spend more to maintain existing stores than to open new stores in 2008.

McGranahan also said he doesn't expect Home Depot to complete the second part of a $22.5 billion stock buyback in 2008.