The Home Depot Updates Growth Goals
Predicts 5% sales growth in 2014; increases 2015 targets.
The Home Depot outlined its progress on key strategic priorities and discussed financial targets at its 2013 Investor and Analyst Conference, held Wednesday, Dec.11, 2014. A webcast replay of the conference is available ir.homedepot.com in the Events & Presentations section.
The Company presented an update on its four areas of strategic focus: customer service, product authority, disciplined capital allocation and interconnected retail, and presented an update on its fiscal year 2013 guidance and long-term financial targets.
Fiscal Year 2013 Guidance
The Company reaffirmed its sales and diluted earnings-per-share guidance for fiscal 2013. The Company expects sales to be up approximately 5.6 percent for the year and diluted earnings-per- share to be up approximately 24 percent to $3.72 for the year.
Comparable store sales, on a 52-week like for like basis, are expected to be up approximately 7.0 percent for the year. The Company's fiscal 2013 sales and diluted earnings-per-share guidance is based on a 52-week year compared to fiscal 2012, a 53-week year.
Fiscal Year 2014 Financial Outlook
The Company provided the following financial targets for fiscal 2014 and intends to provide sales and earnings guidance for fiscal year 2014 in February:
- Sales growth of approximately 5 percent
- 8 new stores
- Operating margin expansion of approximately 70 basis points
- Share repurchases of approximately $5.0 billion
- Diluted earnings-per-share growth after anticipated share repurchases of approximately 17 percent
- Capital spending of approximately $1.5 billion
Long-Term Financial Targets
In June of 2012, the Company announced a long term operating margin target of 12 percent and a 24 percent return on invested capital target by the end of fiscal 2015. The Company anticipates reaching these targets at the end of fiscal 2014, one year earlier than planned, and has updated its fiscal 2015 financial targets as follows:
- Operating margin of approximately 13 percent
- Return on invested capital of approximately 27 percent
"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," said Frank Blake, chairman & CEO.
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