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THE HOME DEPOT REPORTS RECORD EARNINGS AND SALES FOR 30TH CONSECUTIVE QUARTER; EARNINGS UP 32 PERCENT, SALES UP 32 PERCENT FOR SECOND QUARTER

 ATLANTA, Aug. 17 /PRNewswire/ -- The Home Depot (NYSE: HD), America's largest home improvement retailer, today reported record earnings of $134,504,000 ($.30 per share) for the second quarter of its 1993 fiscal year, the 13 weeks that ended on Aug. 1, 1993.
 That is a 32 percent increase over the same period of the 1992 fiscal year when the company earned $101,867,000 ($.23 per share).
 Sales during the second quarter of fiscal 1993 rose 32 percent to $2,453,756,000 compared to $1,856,380,000 during the comparable 1992 period. On a comparable store-for-store basis, sales were up 9 percent for the quarter. Comparable store sales would have been 8 percent without the eight southern Florida stores still engaged in the Hurricane Andrew rebuilding effort.
 This is the 30th consecutive quarter in which The Home Depot has had record sales and earnings.
 "The Home Depot's continuing record of strong earnings and sales in the face of sagging consumer confidence further demonstrates the relatively non-cyclical nature of our business compared to other retail niches," observed Ronald M. Brill, Home Depot's executive vice president/Chief Financial Officer. "People tend to put their homes first."
 For the first six months of fiscal 1993, earnings increased by 33 percent to $241,303,000 ($.53 per share) compared to earnings of $181,363,000 ($.41 per share) for the same period of fiscal 1992. Sales for the first six months of fiscal 1993 increased 33 percent to $4,633,974,000 from $3,495,955,000 for the same period of fiscal 1992. On a comparable store-for-store basis, sales were up 8 percent for the first half of fiscal 1993. They would have been up 7 percent without the eight southern Florida stores affected by Hurricane Andrew.
 All per share data have been adjusted to reflect the four-for-three stock split that was effected in the form of a stock dividend on April 14, 1993.
 Through the first six months of the current fiscal year, annualized inventory turnover was 6.4, compared to 6.7 for the same period of last fiscal year.
 The Home Depot opened six new stores and relocated one other during the second quarter of fiscal 1993. The new stores are located in Charleston, S.C.; El Cerrito, Calif.; Gaithersburg, Md.; San Antonio; Rancho Mirage, Calif.; and Seattle. The store relocation was in Hialeah, Fla.
 At the close of the second quarter of fiscal 1993, the company was operating a total of 230 stores in 21 states with an aggregate of approximately 22,696,000 square feet of selling space. That is a 23 percent increase over the approximately 18,389,000 square feet of selling space at the close of the second quarter of fiscal 1993 when the company was operating 191 stores in 17 states.
 Atlanta-based Home Depot operates full-service, warehouse-style stores averaging approximately 98,700 square feet in size. The stores sell approximately 30,000 different kinds of building materials, home improvement products and lawn and garden supplies which are sold primarily to do-it-yourselfers but also to home improvement, construction and building maintenance professionals. Founded in 1978, The Home Depot is now widely regarded as the leading retailer in the home improvement industry. Its stock is traded on the New York Stock Exchange under the symbol, "HD," and is included in the Standard & Poor's 500 Index.
 THE HOME DEPOT, INC. STATEMENTS OF EARNINGS
 SECOND QUARTER
 (unaudited)
 (000s omitted)
 3 months ended 6 months ended
 8/1/93 8/2/92 8/1/93 8/2/92
 Sales $2,453,756 $1,856,380 $4,633,974 $3,495,955
 Cost of merchandise
 sold 1,791,922 1,353,960 3,370,440 2,547,535
 Gross profit 661,834 502,420 1,263,534 948,420
 Operating expenses:
 Selling and
 store op. 405,336 306,114 794,581 590,862
 Pre-opening 4,822 6,474 10,320 11,042
 Gen. & admin. 45,257 35,647 91,872 69,531
 Total operating
 expenses 455,415 348,235 896,773 671,435
 Operating income 206,419 154,185 366,761 276,985
 Interest income 16,927 18,516 32,697 33,806
 Interest expense (8,132) (10,604) (16,765) (22,908)
 Interest, net 8,795 7,912 15,932 10,898
 Earnings before
 income taxes 215,214 162,097 382,693 287,883
 Income taxes 80,710 60,230 141,390 106,520
 Net earnings $134,504 $101,867 $ 241,303 $ 181,363
 Earnings per
 share(a) $ .30 $ .23 $ .53 $ .41
 Weighted average
 shares(a) 453,147 442,369 452,854 438,331
 Selected Highlights
 Customer
 transactions 62,240 49,120 118,110 94,074
 Average sale $ 39.42 $ 37.79 $ 39.23 $ 37.16
 Weighted average
 weekly sales per
 store $838,000 $776,000 $ 802,000 $ 743,000
 Square footage -
 end of period --- --- 22,696 18,389
 Capital
 expenditures 199,757 80,381 392,470 160,883
 Depreciation and
 amortization 21,490 18,147 42,025 33,477
 Selected Balance Sheet Information
 8/1/93 8/2/92
 Cash and short term investments $ 337,627 $ 771,868
 Merchandise inventories 1,126,001 839,708
 Current assets 1,674,149 1,767,726
 Property and equip., net 1,927,459 1,377,446
 Long-term investments 747,687 535,732
 Other assets 71,379 48,297
 Total assets 4,420,674 3,729,201
 Current liabilities 962,794 777,707
 Long-term debt 38,066 39,544
 Convertible securities 804,990 805,000
 Stockholders' equity $2,579,589 $2,087,872
 (a) Share and per-share data for all periods presented have been adjusted retroactively for a four-for-three stock split-up effected in the form of a dividend in April, 1993.
 -0- 8/17/93
 /CONTACT: Ronald M. Brill, executive vice president/chief financial officer, 404-431-2727, or Lonnie Fogel, director of Public Relations, 404-431-2666, both of The Home Depot/
 (HD)


CO: The Home Depot, Inc. ST: Georgia IN: REA SU: ERN

RA-SB -- AT001 -- 3380 08/17/93 08:04 EDT
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