Home Depot Q1 2015 Earnings Press Release 5-19-15

Home Depot Q1 2015 Earnings Press Release 5-19-15 - The...

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The Home Depot Announces First Quarter Results; Raises Fiscal Year 2015 Guidance ATLANTA, May 19, 2015 -- The Home Depot®, the world's largest home improvement retailer, today reported sales of $20.9 billion for the first quarter of fiscal 2015, a 6.1 percent increase from the first quarter of fiscal 2014. Comparable store sales for the first quarter of fiscal 2015 were positive 6.1 percent, and comp sales for U.S. stores were positive 7.1 percent. Net earnings for the first quarter of fiscal 2015 were $1.6 billion, or $1.21 per diluted share, compared with net earnings of $1.4 billion, or $1.00 per diluted share, in the same period of fiscal 2014. For the first quarter of fiscal 2015, diluted earnings per share increased 21.0 percent from the same period in the prior year. First quarter of fiscal 2015 results reflect a benefit to earnings of $71 million, or $0.05 per diluted share, primarily attributable to the settlement of a tax audit. “We had a stronger than expected start to the year as we experienced a more normal spring across much of the country and continued recovery of the U.S. housing market,” said Craig Menear, chairman, CEO and president. “I would like to thank our associates for their hard work and dedication.” Updated Fiscal 2015 Guidance The Company has provided a range of sales, comp sales and diluted earnings-per-share growth to reflect the difference between 2014 average exchange rates and current exchange rates. The low-end of the Company’s sales, comp sales and diluted earnings-per-share growth guidance reflects the U.S. dollar remaining at current foreign exchange rates. Based on its year-to-date performance, the Company raised its fiscal 2015 sales guidance and now expects sales will be up approximately 4.2 percent to 4.8 percent and comp sales will be up approximately 4.0 percent to 4.6 percent. The Company also raised its diluted earnings-per-share guidance for the year and now expects diluted earnings per share to grow approximately 11 to 12 percent from fiscal 2014 to $5.24 to $5.27. This earnings-per-share guidance includes the benefit of a favorable settlement of a tax audit, the Company’s year-to-date share repurchases and the Company’s intent to repurchase $3.4 billion in additional shares over the remainder of the fiscal year. The Company’s fiscal 2015 diluted earnings-per-share guidance does not include an accrual for contingent losses related to the data breach discovered in September 2014. Other than $7 million of net breach-related costs contained in the Company’s first quarter fiscal 2015 earnings, at this time the Company is not able to estimate the costs, or a range of costs, related to the breach. Costs related to the breach may include liabilities to payment card networks for reimbursements of credit card fraud and card reissuance costs; liabilities related to the Company’s private label credit card fraud and card -more-
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