The Home Depot Announces Fourth Quarter and Fiscal 2007 Results; Provides Fiscal 2008 Outlook
The Home Depot Announces Fourth Quarter and Fiscal 2007 Results; Provides Fiscal 2008 Outlook Tuesday February 26, 6:00 am ET
ATLANTA, Feb. 26 /PRNewswire-FirstCall/ -- The Home Depot®, the world's largest home improvement retailer, today reported fiscal 2007 fourth quarter consolidated net earnings of $671 million, or $0.40 per diluted share, compared with $925 million, or $0.46 per diluted share, in the same period in fiscal 2006. Sales for the fourth quarter totaled $17.7 billion, a 1.5 percent increase from the fourth quarter of fiscal 2006.
The fourth quarter of 2007 consisted of 14 weeks compared with 13 weeks for the prior year. The 14th week added approximately $1.1 billion in sales for the quarter and the year. Excluding the 14th week, fourth quarter sales declined by 4.7 percent compared to the fourth quarter of 2006. Comparable store sales for the quarter declined 8.3 percent. The additional week had no impact on comparable sales performance for the quarter or the year.
Earnings per diluted share from continuing operations in the fourth quarter of fiscal 2007 were $0.40, compared to $0.42 per diluted share in the fourth quarter of fiscal 2006, a decrease of 4.8 percent. The 14th week increased earnings per diluted share for continuing operations by approximately $0.04 for the quarter and the year. Excluding the 14th week, earnings per diluted share from continuing operations declined by 14.3 percent.
For fiscal 2007, consolidated earnings per diluted share decreased 15.1 percent to $2.37 on consolidated net earnings of $4.4 billion, compared to consolidated earnings per diluted share of $2.79 on net earnings of $5.8 billion in fiscal 2006. Excluding the 53rd week, consolidated earnings per share declined by 16.5 percent.
Earnings per diluted share from continuing operations in fiscal 2007 were $2.27, compared to $2.55 per diluted share in fiscal 2006, a decline of 11.0 percent. Excluding the 53rd week, earnings per share from continuing operations declined by 12.5 percent. Sales for fiscal 2007 were $77.3 billion, 2.1 percent below fiscal 2006. Excluding the 53rd week, sales for fiscal 2007 decreased by 3.5 percent from fiscal 2006. Comparable store sales for the year declined 6.7 percent.
"This was a difficult year financially, but I believe the progress we made on our key priorities set the foundation for the long term health of our company," said Frank Blake, chairman & CEO. "I want to personally thank our associates, who remain passionately dedicated to improving the shopping experience for our customers."
"We see the home improvement market in 2008 as challenging, but we are going to continue to focus on our five priorities and build on the progress we made in 2007," Blake said.
2008 Financial Outlook
-- Total sales decline of 4 to 5 percent -- Negative comps in the mid to high single digit range -- Flat to slightly positive gross margin expansion -- Operating margin decline of 170 to 210 basis points -- Depreciation and amortization expense of approximately $1.9 billion -- Income tax rate of 37.2 percent -- Continuing operations earnings per share decline of 19 to 24 percent -- Capital expenditures of $2.3 billion -- 55 new store openings with 5 store relocations
The Home Depot will conduct a conference call today at 9 a.m. ET to discuss information included in this news release and related matters