Home Depot Reports Third Quarter Earnings Jump

ATLANTA - The Home Depot Inc., the nation's largest home improvement store chain, reported a nearly 15 percent jump in third-quarter earnings on strong sales, particularly at stores open at least a year.

For the three months ending Oct. 31, Home Depot said it earned $1.32 billion, or 60 cents a share, compared to a profit of $1.15 billion, or 50 cents a share, a year ago. Revenue in the quarter rose 13.1 percent to $18.77 billion from $16.60 billion recorded in the same three-month period a year ago.

Same-store sales - a measure that compares sales at stores open at least a year - increased 4.5 percent in the quarter.

Based on the results, Home Depot said it was raising its fiscal 2004 earnings per share growth guidance to 19 percent to 20 percent. It had earlier expected earnings per share growth for the year of 14 percent to 17 percent.

The company said it has benefited from the continued improvements it has made to the look of its stores, from enhanced lighting and new merchandise to cleaner floors and more helpful personnel. The chain launched a broad store modernization program in the face of growing competition.

?EUR??,,????'??Our commitment to store modernization is paying off,?EUR??,,????'?? chairman and chief executive Bob Nardelli said. ?EUR??,,????'??Our business strategy of enhancing the core, extending the business and expanding our markets is clearly driving consistent, profitable sales growth.?EUR??,,????'??

For the first nine months of the year, Home Depot earned $3.96 billion, or $1.78 a share, compared to a profit of $3.35 billion, or $1.46 a share, a year ago. Home Depot said the effect of an accounting change resulted in a reduction of net earnings of $108 million, or 5 cents a share, in the first nine months of the year. Nine-month revenue was $56.28 billion, compared to $49.69 billion a year ago.

Home Depot operates a total of 1,826 stores, including 1,602 stores in the United States, 110 stores in Canada, and 42 stores in Mexico. The company also operates 54 EXPO Design Center locations, 11 Home Depot Landscape Supply stores, five Home Depot Supply stores, and two Home Depot Floor Stores.