Atlanta, GA, May 16, 2006--Home Depot reported first quarter net earnings of $1.5 billion, or $0.70 per diluted share, compared to $0.57 per diluted share and net earnings of $1.2 billion reported for the same period in fiscal 2005.
This resulted in a 22.8 percent increase in earnings per diluted share over the first quarter of fiscal 2005.
Sales for the first quarter of fiscal 2006 totaled $21.5 billion, a 13.1 percent increase from the first quarter of fiscal 2005.
"This quarter marked a milestone for The Home Depot with the acquisition of Hughes Supply. We are pleased to welcome the Hughes associates to our team," said Bob Nardelli, chairman, president & CEO of The Home Depot.
During the first quarter, the Company acquired Hughes Supply. The transaction more than doubled the size of Home Depot Supply, which now has more than 20,000 associates operating in more than 900 locations nationwide and in Canada with projected fiscal 2006 sales approaching $12 billion. The results of Hughes Supply are included in the Company's consolidated results beginning March 30, 2006, the date of acquisition.
The Company now operates and provides financial information for two business segments: HD Retail and HD Supply.
$ Millions First Quarter
Sales 2006 2005 % Increase
HD Retail $19,376 $18,329 5.7 %
HD Supply $2,132 $657 224.5 %
Operating profit
HD Retail $2,278 $1,976 15.3 %
HD Supply $149 $28 432.1 %
"The Home Depot has a disciplined approach to capital allocation and growth. At the end of the quarter, we reached a return on invested capital of 24.2 percent, up 220 basis points from the first quarter of fiscal 2005," said Carol Tome, executive vice president and CFO.
In the first quarter, the board of directors authorized an additional $1 billion in share repurchases, bringing the total share repurchase authorization to $12 billion. During the first quarter, the Company repurchased $565 million or 14 million shares. Since its share repurchase program began in 2002, the Company has repurchased 291 million, or approximately 13 percent of its outstanding shares and spent $10.3 billion under its $12 billion authorization. In January 2006, the company increased its quarterly dividend by 50 percent. Over the past five years, the company's dividend has increased by 275 percent.
At the end of the first quarter, the Company reported total assets of $52.7 billion, up 18 percent from the end of fiscal 2005 reflecting the impact of the Hughes acquisition and total stockholders' equity of $27.8 billion.
The Company saw average ticket growth across all merchandise categories. In the first quarter of fiscal 2006, The Home Depot increased its average ticket by 4.3 percent to a record $60.75.
"Our stores are well prepared for spring and summer with an unprecedented number of new and exclusive products," said Tom Taylor, executive vice president, merchandising and marketing. "Throughout 2006, we will continue our focus on providing distinctive, one-of-a-kind merchandise and creating excitement in our stores. Beginning in this quarter, we are accelerating the reset activity in 500 of our highest volume stores and will reset over 100 bays in each of those stores by year-end."
