The Home Depot Reports 2006 Results
Feb 20, 2007
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The Home Depot today reported fourth quarter and fiscal 2006 results. For fiscal 2006, diluted earnings per share increased 2.6 percent to $2.79 on net earnings of $5.8 billion, compared to diluted earnings per share of $2.72 on net earnings of $5.8 billion in fiscal 2005. Excluding a $0.04 per diluted share expense related to executive severance, the company reported, on an adjusted basis, earnings per diluted share of $2.83, up 4.0 percent, compared to fiscal 2005.

For fiscal 2006, net sales were $90.8 billion, an 11.4 percent increase over fiscal 2005. Fiscal 2006 net sales in the retail segment were $79.0 billion, an increase of $2.0 billion, or 2.6 percent above fiscal 2005, driven by new stores. Comparable store sales for the year declined 2.8 percent. Fiscal 2006 net sales in the HD Supply segment were $12.1 billion, an increase of $7.5 billion, or 161.6 percent above fiscal 2005, driven by solid organic growth and sales from acquired businesses.

Fourth quarter net earnings were reported at U.S. $925 million, or $0.46 per diluted share, compared with $1.3 billion, or $0.60 per diluted share, in the same period in fiscal 2005. Excluding a $0.04 per diluted share expense related to executive severance, the company reported, on an adjusted basis, $0.50 per diluted share.
   
For the fourth quarter of fiscal 2006, sales totaled $20.3 billion, a 4.0 percent increase from the fourth quarter of fiscal 2005. Total sales in the retail segment declined 2.0 percent to $17.4 billion, and comparable store sales declined 6.6 percent in the fourth quarter. Total sales in the HD Supply segment grew by 64.4 percent to $2.9 billion, reflecting sales from acquired businesses.

"Reflecting the challenging housing market, our 2006 retail results were disappointing," said Frank Blake, chairman & CEO. "We may not be able to impact the housing market or general economic conditions, but we know that we can improve our performance relative to our overall market share. That will be a central point of emphasis for us in 2007 and beyond."

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