Atlanta, GA, Feb. 25--The Home Depot had record net earnings of $3.7 billion ($1.56 per diluted share) for fiscal 2002, compared with net earnings of $3.0 billion ($1.29 per diluted share) the year before. Sales for the year increased 9% to $58.2 billion and comparable store sales were flat.
For the fourth quarter, net earnings reached $686 million ($0.30 per diluted share) compared with $710 million ($0.30 per diluted share) in the same period a year ago. Sales for the fourth quarter totaled $13.2 billion, a 2% decline from the same period a year ago. Comparable store sales for the fourth quarter declined 6%.
As reported, the fourth quarter of 2001 consisted of 14 weeks and the year included 53 weeks. Sales for the year increased 11% from the previous year, and earnings per diluted share increased 24%. Fourth quarter sales increased 5% and earnings per diluted share increased 11% from the same period a year ago.
"The Home Depot delivered strong earnings growth for fiscal 2002 as we continued the process of transforming the infrastructure of our business," said Bob Nardelli, chairman, president & CEO. "Throughout the year we launched new programs to reinvigorate product assortments, reset critical departments within our stores, and develop customer service initiatives. In 2002, we were especially pleased with our appliance business, where we captured considerable market share.
"During 2002 we completed a $2 billion share repurchase program, buying back approximately 69 million shares of common stock. We ended the year with equity of $19.8 billion, a debt to equity ratio of 6.7%, and $2.3 billion in cash.
"In fiscal 2003, we expect to open 200 new stores and add 40,000 associates. Looking forward, we expect to gain traction from the transformational initiatives we launched during 2002. While the strength of our balance sheet and our operating performance allow us to stay on strategy, we remain cautious due to the current geopolitical environment and the domestic economy."
The Home Depot reaffirmed that it expects sales for fiscal 2003 to increase between 9% and 12% and earnings per diluted share to increase between 9% and 14%. Comparable sales are expected to be flat to slightly positive on the year. The company also indicated that, beginning with fiscal year 2003, it would provide sales, earnings and other financial forward-looking guidance on an annual basis only, consistent with its long term outlook for the business.
