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THE HOME DEPOT REPORTS RECORD EARNINGS AND SALES FOR THIRD QUARTER OF FISCAL 1991; NET EARNINS UP 62 PERCENT, SALES UP 39 PERCENT

    THE HOME DEPOT REPORTS RECORD EARNINGS AND SALES FOR THIRD QUARTER
      OF FISCAL 1991; NET EARNINS UP 62 PERCENT, SALES UP 39 PERCENT
    ATLANTA, Nov. 19 /PRNewswire/ -- The Home Depot, Inc. (NYSE: HD), the nation's largest home center retailer, today reported that net earnings increased 62 percent to a record $58,385,000 for the third quarter of fiscal 1991, the 13 weeks that ended on Nov. 3, compared to the $36,096,000 the company earned during the comparable period of fiscal 1990.
    On a per share basis, earnings for the third fiscal quarter just ended increased to a record $.27 compared to earnings of $.20 during last year's third fiscal quarter.  For the first nine months of fiscal 1991, net earnings rose 49 percent to a record $181,501,000 from $121,952,000 during the comparable period of fiscal 1990.  On a per share basis, earnings for the first nine months of fiscal 1991 increased to a record $.89 compared to earnings of $.67 for the first nine months of the 1990 fiscal year.  All per share data have been adjusted to reflect the three-for-two stock split that was effected in June 1991.
    Sales for the third quarter of fiscal 1991 rose 39 percent to a record $1,298,277,000 compared to sales of $936,612,000 for the third quarter of fiscal 1990.  Sales through the first nine months of fiscal 1991 rose 37 percent to a record $3,837,959,000 compared to $2,807,814,000 during the comparable fiscal 1990 period.  On a comparable store-for-store basis, sales were up 10 percent for the quarter and 10 percent for the first nine months of fiscal 1991.
    Annualized inventory turnover for the third quarter of fiscal 1991 was 6.2 compared to 6.1 during the comparable period of fiscal 1990.
    Sales and earnings for the third quarter of fiscal 1991 were generated from 165 stores, compared to 132 stores that were operating at the end of the third quarter of fiscal 1990.
    The company opened nine stores during the 1991 third fiscal quarter.  Of the new stores, there are two each in Orlando and Los Angeles and one each in San Diego; San Francisco; Nashua, N.H.; Clifton, N.J.; and Seekonk, Mass.  Also during the third fiscal quarter just ended, the company relocated two stores in the Dallas market and temporarily closed a store in the Phoenix area for extensive remodeling and repairs.  That store is expected to reopen in spring 1992.  During the fourth quarter, the company plans to open approximately 10 additional stores and relocate its store in Mobile, Ala.  Subsequent to the end of the third fiscal quarter, the company closed a store in Altamonte Springs in the Orlando market which, by design, has been supplanted by the two Orlando-area stores which opened during the fiscal quarter just ended.
    Atlanta-based Home Depot operates warehouse-style home center stores in 33 markets in 15 states.  Ranging in size from 67,000 to 140,000 square feet, the stores stock approximately 30,000 different kinds of building materials, home improvement and lawn and garden products which are sold primarily to do-it-yourselfers but also to home improvement, construction and building maintenance professionals.  Founded in 1978, the company is credited with being a leading innovator in the home center industry by combining the economies of scale inherent in a warehouse format with level of customer service unprecedented among warehouse retailers.  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
                         THIRD QUARTER
                           (unaudited)
                         (000s omitted)
                        3 months ended           9 months ended
                      11/3/91    10/28/90      11/3/91    10/28/90
    Sales           $1,298,277   $936,612    $3,837,959  $2,807,814
    Cost of merchandise
     sold              932,899    677,795     2,777,880   2,036,109
    Gross profit       365,378    258,817     1,060,079     771,705
    Operating expenses:
       Selling and
        store op.      242,125    173,754       681,934     500,607
    Pre-opening          6,170      3,533        12,985       7,633
    Gen. & admin.       29,742     23,216        85,240      66,263
    Total operating
       expenses        278,037    200,503       780,159     574,503
    Operating income    87,341     58,314       279,920     197,202
    Interest income      7,309      6,179        19,761      12,814
    Interest expense    (1,525)    (7,207)      (10,200)    (16,444)
    Interest, net        5,784     (1,028)        9,561      (3,630)
    Earnings before
       income taxes     93,125     57,286       289,481     193,572
    Income taxes        34,740     21,190       107,980      71,620
    Net earnings      $ 58,385   $ 36,096    $  181,501   $ 121,952
    Earnings per
     share(a)         $    .27   $    .20    $      .89   $     .67
    Weighted average
     shares(a)         216,216    181,221       205,036     180,992
                         Selected Highlights
    Customer
     transactions       36,441     27,227       108,980      82,096
    Average sale      $  35.63   $  34.40    $    35.22   $   34.20
    Weighted average
     weekly sales per
     store            $632,000   $564,000    $  647,000   $ 581,000
    Square footage -
     end of period         ---        ---        15,503      11,882
    Capital
     expenditures      116,143    109,159       324,487     264,672
    Depreciation and
     amortization       13,743      8,852        37,953      24,089
                 Selected Balance Sheet Information
                                  11/3/91       10/28/90
    Cash and investments        $  521,569    $  246,920
    Merchandise inventories        656,972       478,716
    Current assets               1,261,628       781,635
    Property and equip., net     1,162,598       755,269
    Other assets                    39,678        40,818
    Total assets                 2,463,904     1,577,722
    Current liabilities            578,136       409,782
    Long-term debt                  41,260        42,527
    Convertible securities         229,930       488,659
    Stockholders' equity        $1,600,481    $  623,790
    (a) Share and per-share data for all periods presented have been adjusted retroactively for a three-for-two stock split effected in the form of a dividend in June.
    -0-                         11/19/91
    /CONTACT:  Ronald M. Brill, senior vice president - chief financial officer, 404-431-2727, or Lonnie Fogel, 404-431-2666, both of Home Depot/
    (HD) CO:  The Home Depot Inc. ST:  Georgia IN:  REA SU:  ERN BR-BN -- AT001 -- 4777 11/19/91 08:05 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Nov 19, 1991
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