What is the overall financial performance of Home Depot for the third quarter and first nine months of fiscal 2004?

Home Depot demonstrated strong performance, with net sales growing by 13.1% to $18.8 billion for the third quarter and 13.3% to $56.3 billion for the first nine months of fiscal 2004. Net earnings also saw significant increases, reaching $1.3 billion ($0.60 diluted EPS) for the quarter and $4.0 billion ($1.78 diluted EPS) for the nine-month period.

What drove the increase in net sales?

The growth in net sales was primarily driven by a comparable store sales increase of 4.5% in the third quarter and 5.6% for the nine-month period. Additionally, sales from new stores opened within the last year and revenue from recently acquired companies contributed to the overall sales growth. The average ticket price also increased significantly, reaching a company record of $55.53 in the third quarter.

How did the company utilize its cash flows during this period?

Home Depot generated robust cash flow from operations ($6.4 billion for the nine months) which was used to fund significant investing activities, including capital expenditures of $2.8 billion for store expansion and modernization, and strategic acquisitions of White Cap Industries and Home Mart Mexico. The company also returned capital to shareholders through share repurchases, totaling $2.5 billion in the first nine months, and dividend payments.

Are there any significant accounting changes impacting the reported results?

The company adopted EITF 02-16 in January 2004, which reclassified certain vendor consideration from a reduction of advertising expense to a reduction of cost of merchandise sold. This accounting change reduced cost of goods sold by $650 million and increased selling and store operating expenses by $820 million for the nine-month period, resulting in a $0.05 per share reduction in diluted EPS for that period. The company believes that excluding this impact allows for better comparability of operating performance.

HD 10-Q Quarterly Report Q3 FY2005 — Revenue, Net Income, EPS

Summary

Home Depot Inc. reported strong financial performance for the third quarter and first nine months of fiscal year 2004. Net sales increased by 13.1% year-over-year for the quarter to $18.8 billion and by 13.3% for the nine-month period to $56.3 billion. This growth was driven by a comparable store sales increase of 4.5% and 5.6% respectively, alongside contributions from new stores and recent acquisitions. The company also saw a significant increase in its average ticket price, reaching a record $55.53 for the third quarter. Net earnings for the third quarter rose to $1.3 billion ($0.60 diluted EPS) from $1.1 billion ($0.50 diluted EPS) in the prior year. For the nine-month period, net earnings were $4.0 billion ($1.78 diluted EPS), up from $3.4 billion ($1.46 diluted EPS) in the comparable period of 2003. The company's financial position remains robust, with $3.4 billion in cash and cash equivalents at the end of the quarter. Significant investments were made in growth, including acquisitions and capital expenditures for store expansion and modernization.

Key Highlights

1Net sales for Q3 fiscal 2004 increased 13.1% to $18.8 billion, and for the nine-month period increased 13.3% to $56.3 billion.
2Comparable store sales increased by 4.5% in Q3 and 5.6% for the first nine months, with hurricanes providing a modest boost.
3Average ticket price reached a record $55.53 in Q3 fiscal 2004, a 6.6% increase year-over-year.
4Net earnings for Q3 fiscal 2004 were $1.3 billion, or $0.60 per diluted share, compared to $1.1 billion, or $0.50 per diluted share, in Q3 fiscal 2003.
5For the first nine months of fiscal 2004, net earnings were $4.0 billion, or $1.78 per diluted share, compared to $3.4 billion, or $1.46 per diluted share, in the prior year.
6The company made significant investments in growth, including acquisitions (White Cap Industries, Home Mart Mexico) and capital expenditures of $2.8 billion for store expansion and remodels during the first nine months.
7Cash flow from operations remained strong, providing $6.4 billion for the nine-month period, supporting investing and financing activities, including substantial share repurchases totaling $2.5 billion in the nine-month period.

HOME DEPOT, INC. Quarterly Report for Q3 Ended Oct 31, 2004

Summary

Key Highlights

Frequently Asked Questions