Home Depot Backs FY2013 View, Expects To Meet 2015 Goals Earlier Than Planned

(RTTNews) - Home improvement retailer Home Depot (HD) Wednesday backed its earnings per share and sales guidance for fiscal 2013, adding that it expects to achieve its goals for 2015 a year earlier than planned.

Home Depot expects fiscal 2013 earnings per share to be up 24 percent to $3.72 for the year and sales to increase about 5.6 percent. On average, 31 analysts polled by Thomson Reuters expect earnings of $3.75 for the year. Analysts' estimates typically exclude special items.

Comparable store sales for the year, on a 52-week like for like basis, are expected to be up 7 percent. The company's fiscal 2013 sales and earnings per share guidance are based on a 52-week year compared to fiscal 2012 that was a 53-week year.

For fiscal 2014, earnings per share growth of 17 percent is expected after estimated share repurchases of around $5 billion. Sales growth is estimated to be 5 percent.

The retailer plans to open 8 new stores during the year and capital spending is estimated to be about $1.5 billion.

In June 2012, the company announced a long term operating margin target of 12 percent and a return on invested capital target of 24 percent by the end of fiscal 2015.

Home Depot expects to reach these targets at the end of fiscal 2014, one year earlier than planned. Thus the company now expects for fiscal 2015, operating margin of approximately 13 percent and return on invested capital of around 27 percent.

Frank Blake, chairman & CEO, said, ''Thanks to the hard work and dedication of our associates, we expect to meet the financial targets we set out in June of 2012 a year earlier than planned. We have set out a challenging new goal for 2015 and plan to continue to build on our company's foundation of customer service, product authority and value creation."

The company is holding an Investor and Analyst Conference today. The firm will provide an update on its four areas of strategic focus - specifically customer service, product authority, disciplined capital allocation and interconnected retail - at the meeting, in addition to the fiscal 2013 guidance and long-term financial targets.

At the end of the third quarter, Home Depot operated a total of 2,260 retail stores in all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The company had sales of $74.8 billion and earnings of $4.5 billion for fiscal 2012.

HD closed down 1.2 percent at $78.61 on Tuesday.