EXHIBIT 99.1
[THE HOME DEPOT LOGO]
THE HOME DEPOT REPORTS RECORD FIRST QUARTER EARNINGS;
EPS INCREASED 8.3% TO $0.39 ON SALES OF $15.1 BILLION
ATLANTA, GEORGIA, May 20, 2003 - The Home Depot, the world's largest home
improvement retailer, today reported record first quarter net earnings of $907
million ($0.39 per diluted share) for fiscal 2003, compared with net earnings
of $856 million ($0.36 per diluted share) in fiscal 2002. Sales for the period
increased 5.8 percent to $15.1 billion and comparable store sales declined 1.6
percent.
"The Home Depot is beginning to gain traction from the transformational
initiatives launched last year," said Bob Nardelli, Chairman, President & CEO.
"We introduced new products, increased the overall inventory levels in our
stores, and introduced a cohesive, nationwide marketing program. Collectively,
these initiatives helped us perform through a tough environment. Our store
reinvestment strategy is delivering a cleaner, brighter shopping environment as
we continued with our store resets and remodels. Our 315,000 associates focused
on sales, service and execution during the quarter and delivered the highest
average ticket in company history.
"While we remain cautious on the domestic economic outlook, the strength of our
balance sheet and our operating performance will allow us to stay on strategy
with continued investment in our stores, our associates, and our customers,"
Nardelli said.
The Home Depot reaffirmed that it expects sales for fiscal 2003 to increase
between 9 and 12 percent and earnings per diluted share to increase between 9
and 14 percent. Comparable sales are expected to be flat to slightly positive
on the year. The company provides sales, earnings and other financial
forward-looking guidance on an annual basis only, consistent with its long-term
outlook for the business.
The Home Depot will conduct a conference call to discuss information included
in this news release and related matters at 9 a.m. EDT on Tuesday, May 20. The
conference call is available for analysts and institutional investors at (719)
457-2698, and the passcode is 122481. The conference call will be available in
its entirety through a webcast at www.homedepot.com, and will be available
through replay at www.homedepot.com under the caption Investor Relations
through Tuesday, August 19, 2003.
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Statements of The Home Depot's expectations for total sales growth, comparable
store sales, and earnings performance in this release constitute
"forward-looking statements" as defined in the Private Securities Litigation
Reform Act of 1995. Such statements are based on currently available operating,
financial and competitive information and are subject to various risks and
uncertainties that could cause actual results to differ materially from the
company's historical experience and its present expectations. These risks and
uncertainties include, but are not limited to, fluctuations in and the overall
condition of the U.S. economy, stability of costs and availability of sourcing
channels, conditions affecting new store development, the company's ability to
implement new technologies and processes, the company's ability to attract,
train and retain highly-qualified associates, unanticipated weather conditions,
and the impact of competition and regulatory and litigation matters. Undue
reliance should not be placed on such forward-looking statements, as such
statements speak only as of the date on which they are made. Additional
information regarding these and other risks is contained in the company's
periodic filings with the Securities and Exchange Commission.
During the first quarter, The Home Depot opened 36 new stores. At the end of
the first quarter of fiscal 2003, the company operated a total of 1,568 stores,
including 1,396 Home Depot stores in the United States, 90 Home Depot stores in
Canada, and 15 Home Depot stores in Mexico. The company also operates 53 EXPO
Design Centers, 5 HD Supply stores, 8 HD Landscape Supply stores, and one Home
Depot Floor Store. Home Depot stock is publicly traded (NYSE: HD) and is
included in the Dow Jones Industrial Average and the Standard & Poor's 500
Index.
###
For further information, contact:
Investors & Analysts News Media
Bob Burton Jerry Shields
Vice President of Investor Relations Sr. Public Relations Manager
770-384-2666 770-384-2741
bob_burton@homedepot.com jerry_shields@homedepot.com
THE HOME DEPOT, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE QUARTERS ENDED MAY 4, 2003 AND MAY 5, 2002
(UNAUDITED)
(AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA AND AS OTHERWISE NOTED)
QUARTERS ENDED
------------------------
5-4-03 5-5-02
------------------------
NET SALES $ 15,104 $ 14,282
COST OF MERCHANDISE SOLD 10,275 9,922
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GROSS PROFIT 4,829 4,360
OPERATING EXPENSES:
Selling and Store Operating 3,095 2,745
Pre-Opening 15 25
General & Administrative 271 228
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TOTAL OPERATING EXPENSES 3,381 2,998
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OPERATING INCOME 1,448 1,362
INTEREST AND INVESTMENT INCOME 12 17
INTEREST EXPENSE (18) (7)
------------------------
INTEREST, NET (6) 10
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EARNINGS BEFORE PROVISION FOR INCOME TAXES 1,442 1,372
PROVISION FOR INCOME TAXES 535 516
------------------------
NET EARNINGS $ 907 $ 856
========================
WEIGHTED AVERAGE COMMON SHARES 2,292 2,349
BASIC EARNINGS PER SHARE $ 0.40 $ 0.36
DILUTED WEIGHTED AVERAGE COMMON SHARES 2,297 2,365
DILUTED EARNINGS PER SHARE $ 0.39 $ 0.36
SELECTED HIGHLIGHTS QUARTERS ENDED
---------------------
5-4-03 5-5-02
---------------------
Customer Transactions 296 284
Average Sale per Transaction $ 51.29 $ 50.40
Weighted Avg. Weekly Sales per Store (000's) $ 753 $ 808
Square Footage - End of Period 169 151
Capital Expenditures $ 756 $ 639
Depreciation and Amortization $ 248 $ 209
THE HOME DEPOT, INC.
CONSOLIDATED BALANCE SHEETS
FOR THE PERIODS ENDED MAY 4, 2003, MAY 5, 2002 and FEBRUARY 2, 2003
(AMOUNTS IN MILLIONS)
PERIODS ENDED
--------------------------------------
5-4-03 5-5-02 2-2-03
----------- ----------- ---------
(UNAUDITED) (UNAUDITED) (AUDITED)
ASSETS
Cash and Cash Equivalents $ 4,264 $ 4,982 $ 2,188
Short-Term Investments 76 193 65
Receivables, Net 1,386 1,082 1,072
Merchandise Inventories 9,264 7,417 8,338
Other Current Assets 319 254 254
------- ------- -------
Total Current Assets 15,309 13,928 11,917
Property and Equipment, Net 17,654 15,768 17,168
Other Assets 784 713 926
------- ------- -------
$33,747 $30,409 $30,011
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LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts Payable $ 6,397 $ 5,567 $ 4,560
Accrued Salaries and Related Expenses 945 869 809
Other Current Liabilities 3,583 2,987 2,666
------- ------- -------
Total Current Liabilities 10,925 9,423 8,035
Long-Term Debt 1,321 1,285 1,321
Other Long-Term Liabilities 823 627 853
------- ------- -------
Total Liabilities 13,069 11,335 10,209
Total Stockholders' Equity 20,678 19,074 19,802
------- ------- -------
$33,747 $30,409 $30,011
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