Atlanta, GA, Feb. 24--The Home Depot today reported net earnings of $951 million ($0.42 per diluted share, up 40%) for the fourth quarter of fiscal 2003, compared with $686 million ($0.30 per diluted share) in the fourth quarter of fiscal 2002. Sales for the fourth quarter of fiscal 2003 totaled $15.1 billion, a 14.5% increase from the fourth quarter of fiscal 2002. Comparable store sales for the fourth quarter of fiscal 2003 increased 7.6%.
For fiscal 2003, the company reported record net earnings of $4.3 billion ($1.88 per diluted share, up 21%), compared to net earnings of $3.7 billion ($1.56 per diluted share) in fiscal 2002. Sales for fiscal 2003 increased 11.3% over fiscal 2002 to $64.8 billion and comparable store sales grew by 3.8%.
"These record results reinforce the fact that our strategy of investing nearly $10 billion in business growth and transformation over the past three years is producing the desired results for our customers and our shareholders," said Bob Nardelli, chairman, CEO and president. "Through the hard work of our associates, we have grown our top-line by $19 billion since fiscal 2000. Earnings per diluted share increased 71% during this period, and we remain on strategy to enhance, extend and expand our business. As we enter our 25th year in business, we are proud to be the youngest retailer to reach over $60 billion in revenue and are excited about the growth opportunities we see ahead. The Home Depot is a company with a proud past and a bright future."
In the past two years, the company has repurchased approximately $3.6 billion of its outstanding stock. Over a three-year period, the share repurchase program, coupled with dividends paid, have returned approximately 46% of cumulative earnings to shareholders. The company's robust cash balance of $2.9 billion positions it for future re-investment and growth.
Several significant accomplishments in 2003 are highlighted below:
*Introduced Color Solutions Center, a technological revolution in paint selection.
*Rolled out the Designplace and Appliance Centers in more than 1,500 stores.
*Installed the industry's first self-checkout systems in 777 stores, with great customer acceptance.
*Introduced new store formats and started construction of two new stores in Manhattan.
*Solidified leadership in home improvement marketing, sponsoring programs like Trading Spaces and ESPN College GameDay.
*Hosted the industry's first national Do-it-Herself Workshops, which have attracted over 180,000 attendees in the first four quarterly events.
*Became the first national home improvement retailer to obtain a GSA Schedule contract, which facilitates business between The Home Depot and federal agencies.
"We are enhancing the customer shopping experience and meeting customer aspirations by adding distinctive and innovative merchandise," said Nardelli. "This translated into strong results across North America including: Baltimore; Cleveland; Los Angeles; Monterrey, Mexico; Montreal, Quebec; Nashville; Toronto, Ontario; and Washington D.C. We recognized double-digit sales growth in our HD Supply businesses during the year and are positioned for continued growth in this space."
The company reiterated fiscal 2004 sales growth guidance of 9%-1% and full-year earnings per diluted share growth guidance of 10%-14%, excluding the change in accounting for certain vendor allowances due to EITF 02-16. Including the impact of EITF 02-16, earnings per diluted share growth guidance for fiscal 2004 is 7%-11%.
"Home Depot is making solid progress in the continuing transformation of our company," said Carol Tome, executive vice president and CFO. "We are gaining operating efficiencies, through significant investment in technology and other initiatives to better serve our customers. We nearly doubled our investment in technology and store modernization in 2003 and will spend $1.5 billion in store modernization and technology in fiscal 2004. We plan to open 175 new stores this year."
