Atlanta, GA, February 22--Home Depot in the fourth quarter of 2004 reported net earnings of $1.041 billion and diluted earnings per share of $0.47, an increase of 9.5 percent.
The company matched estimates for the quarter.
Sales for the quarter were $16.8 billion, an 11.2 percent increase from the fourth quarter of fiscal 2003. Comparable store sales for the fourth quarter of fiscal 2004 increased 4.6 percent.
For fiscal 2004 the company reported record setting net earnings of $5 billion or earnings per share of $2.26, an increase of 16 percent over fiscal 2003.
The company also matched analysts estimates for fiscal 2004.
The company's services business grew 20.4 percent during the fourth quarter and 27.9 percent during fiscal 2004, with 23 national programs in place and several others that are being rolled out. The Home Depot expects to sustain double-digit growth in this area. Services include design consultations, delivery, installation, and maintenance as well as contractor services.
Sales for fiscal 2004 increased 12.8 percent over fiscal 2003 to $73.1 billion and comparable store sales grew by 5.4 percent.
Bob Nardelli, Home Depot’s chairman, president & CEO said, "In 2004, operational excellence drove our record results, enabling us to deliver the best comparable store sales performance since 1999. As we move into 2005 with significant momentum, we have unwavering commitment to our strategy of enhancing the core, extending the business and expanding our markets. We will focus on customer satisfaction and continued improvement in the execution of our strategy to deliver sustainable, profitable growth and shareholder returns well into the future."
"In 2004, we maintained our disciplined approach to capital allocation, investing $3.9 billion back into our business and returning nearly $4 billion to shareholders. Over a four-year period, we have returned over 50 percent of our cumulative earnings to our shareholders in the form of dividends and share repurchases," said Carol Tome, executive vice president and CFO.
At the end of fiscal 2004, the company reported total assets of $39 billion, total stockholders' equity of $24 billion, and a return on invested capital of 21.5 percent, up 110 basis points from the prior year.
The company reiterated fiscal 2005 sales growth guidance of 9-12 percent and fiscal 2005 earnings per share growth of 10-14 percent.
The Home Depot registered a record average ticket of $54.89 for fiscal 2004, representing an increase of 7.3 percent from fiscal 2003.
"Our results were strong across a broad range of merchandising categories and throughout North America as we drove innovation and new product selection in our stores. As an example, in 2004, we added new appliances from Maytag and Hotpoint, and introduced the exclusive GE Adora line," said John Costello, executive vice president, Merchandising and Marketing. "Our customers are responding to the improved shopping experience we are providing through our store modernization program."
Customer transactions were 296 million for the fourth quarter, up 3.1 percent from the fourth quarter of 2003. Total customer transactions for the year were 1.295 billion, up 3.9 percent from last fiscal year.
During the fourth quarter, the company opened another urban store in Manhattan, on 59th Street. The company's urban formats differ in size, structure, merchandise and services offered based on location, and demonstrate The Home Depot's flexible business model.
As part of the company's extend strategy, the company opened 183 net new stores, bringing the total store count to 1,890 and opened the 1,000th tool rental center.
