Replies to post #60964 on Zeev's Turnips Patch-No Politics (ZEEV)

[hk2]

The Home Depot Comments on Outlook for Fiscal 2002
January 2, 2003 5:02pm ET (PR NewsWire)

The Home Depot (NYSE: HD), the world's largest home improvement retailer, today announced that it is revising its diluted earnings per share guidance for the fiscal year ending February 2, 2003 from $1.57 to between $1.53 and $1.55. The change in earnings per share outlook is due to slowing sales during the month of December, which lowered the company's expectation of a decline in comparable store sales in the fourth quarter to as much as 10 percent versus previously provided guidance of a decline of between three and five percent.

Reflecting this quarterly guidance, The Home Depot expects total sales growth of 10 percent and earnings per share growth of 21 to 23% on a comparable 52-week basis for fiscal 2002.


Jim

[XenaLives]

Last year on SI someone was talking about the Home Depot clearance sale generating some nice numbers at the expense of their suppliers.

Apparently HD has enough clout to get goods in at little or no cost on a "trial" basis. These goods were blown out below wholesale last Janurary (I'm remodeling my house and I took some home myself :). Since the cost was WAY below wholesale they were able to liquidate below wholesale and still show a profit.

I know this is just hearsay, but it rings true with my personal experience. I am seeing a lot less clearance merchadise in both Lowe's and Home Depot this year. I am speculating that they stocked leaner and therefore have less to sell out. Lack of bargains could mean substantially weaker January sales.