Sales for the first quarter of fiscal 2006 totaled $21.5 billion, a 13.1 percent increase from the first quarter of fiscal 2005.

“While we continue to gain momentum with average ticket, we were disappointed with the overall retail sales,” Chairman and CEO Robert Nardelli said.

During the first quarter, Home Depot acquired Hughes Supply. The transaction more than doubled the size of Home Depot Supply, which now has more than 20,000 associates operating in more than 900 locations nationwide and in Canada with projected fiscal 2006 sales approaching $12 billion. The results of Hughes Supply are included in the Company’s consolidated results beginning March 30, 2006, the date of acquisition.

During the quarter, the Company opened 23 new stores, including four relocations, with four new stores in Canada and two new stores in Mexico, bringing the total store count to 2,051. As of the end of the quarter, approximately 10 percent of the Company’s store base was in Canada and Mexico. As in the U.S., the Company continues to be the market leader in Canada and Mexico.

The company’s retail services business grew by 8.5 percent to $844 million in the first quarter of fiscal 2006. Categories such as countertops, windows, solar and exterior patios and doors reported solid growth.