thanks for posting the announcement. here's bloomberg's take.
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Home Depot 4th-Qtr Net Rises 36% on Kitchen, Remodeling Sales
Bloomberg News
February 23, 1999, 5:32 a.m. PT
Atlanta, Feb. 23 (Bloomberg) -- Home Depot Inc., the largest
U.S. home-improvement retailer, said fiscal fourth-quarter profit
rose 36 percent on higher sales of kitchen, flooring and other
remodeling products.
Earnings for the quarter ended Jan. 31 rose to $418 million,
or 27 cents a share, from $307 million, or 20 cents, adjusted for
a stock split, in the year-earlier quarter. The retailer was
expected to earn 26 cents, the average estimate of analysts
polled by First Call Corp.
Home Depot's sales got a boost from an increase in the
number of home owners as housing affordability approached its
highest level in 40 years and unemployment fell to its lowest
level in 28 years. In addition, unusually warm winter weather
helped sales as consumers were able to work on their homes late
in the season.
''During a time of great economic expansion, Home Depot is
clearly benefiting,'' said analyst Alan Rifkin of Piper Jaffray
Inc., who rates the stock a ''buy.'' ''Home Depot gives consumers
what they want: Unbeatable prices with depth and breadth of
product and a high level of customer service.''
Revenue rose 27 percent to $7.26 billion from $5.73 billion.
Sales at stores open at least a year rose 9 percent during
the quarter. So-called same-store sales are a key indicator of a
retailer's business because they exclude the effect of new,
renovated or closed stores.
Home Depot also benefited from demand for more expensive
interior decorating products and services at its Expo Design
Center stores. The Atlanta-based retailer, which currently
operates eight Expo stores, is expected to have about 200 in the
next six to seven years. It also has 753 Home Depot locations in
the U.S., 43 in Canada and 3 other international stores.
Within the next three years, Home Depot is expected to
increase its share of the estimated $160 billion home-improvement
market to at least 20 percent from about 18 percent now, said
Rifkin.
Home Depot's stock, which has gained 79 percent the past 12
months, rose 1 to 61 1/2 yesterday. |
