Home improvement retailer The Home Depot today reported record results for the fourth quarter and fiscal year 2005, based on strong performance in its core retail stores, services business, and Home Depot Direct, as well as continued expansion of the Home Depot Supply platform.
The company said it grew its U.S. core appliance market share from 8.1 percent to 9.7 percent on a 12-month rolling basis, according to an independent third party research company.
For the fourth quarter of fiscal 2005, Home Depot's diluted earnings per share rose 27.7 percent to a record U.S. $0.60 on net earnings of $1.3 billion, compared with $0.47 on net earnings of $1.0 billion reported for the same period in fiscal 2004. Sales for the fourth quarter of fiscal 2005 totaled $19.5 billion, a 15.9 percent increase from the fourth quarter of fiscal 2004.
For fiscal 2005, diluted earnings per share increased 20.4 percent to $2.72 on net earnings of $5.8 billion, compared to diluted earnings per share of $2.26 on net earnings of $5.0 billion in fiscal 2004. Sales for fiscal 2005 increased to $81.5 billion, an 11.5 percent increase over fiscal 2004.
"In 2006, we will capitalize on our strong momentum and continue to deliver sustainable, predictable and profitable growth," said Bob Nardelli, chairman, president and CEO.
Significant Appliance Factors
Home Depot said significant merchandising accomplishments in 2005 included introducing LG Electronics' major appliances in its U.S. stores. The retailer says this is one of the fastest-growing appliance brands in the U.S.
The retailer also introduced exclusive 28-volt Milwaukee and 18-volt Makita lithium ion cordless power tools in 2005. It also expanded its outdoor living assortment of merchandise, including "fashion-forward innovation" in grills.
The company opened 179 new stores, including five relocations, in 2005, and opened its milestone 2,000th store. It opened 20 net new stores in Canada and 10 net new stores in Mexico. As of year-end, approximately 9.4 percent of Home Depot's store base was outside of the U.S. and it says it maintains its leadership position as the No. 1 home improvement retailer in Canada, Mexico and the United States.
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