The Home Depot Announces First Quarter Results

ATLANTA, May 19 /PRNewswire-FirstCall/ -- The Home Depot(R), the world's
largest home improvement retailer, today reported first quarter of fiscal 2009
net earnings of $514 million, or $0.30 per diluted share, compared with net
earnings of $356 million, or $0.21 per diluted share, in the same period in
fiscal 2008.

(Logo: http://www.newscom.com/cgi-bin/prnh/20030502/HOMEDEPOTLOGO )

First quarter of 2009 results reflect a net impact to operating profit of $117
million related to the closing of the EXPO businesses. In the first quarter of
2008, the Company's reported results included charges of $543 million
associated with the Company's store rationalization plan. On an adjusted
basis, the Company reported first quarter of fiscal 2009 net earnings of $587
million, or $0.35 per diluted share, compared to adjusted net earnings of $697
million, or $0.41 per diluted share, in the same period of fiscal 2008.

Sales for the first quarter totaled $16.2 billion, a 9.7 percent decrease from
the first quarter of fiscal 2008. Comparable store sales for the first quarter
were negative 10.2 percent, and comp sales for U.S. stores were negative 8.6
percent.

"Our markets, and the consumer in general, remain under pressure," said Frank
Blake, chairman & CEO. "But we continue to make progress on improving our
business as evidenced by stronger customer satisfaction ratings.

"I want to thank our associates for their hard work and dedication. It is
their efforts that enable us to deliver these results."

The Company reaffirmed its guidance for fiscal 2009 of sales down 9 percent
with negative comparable store sales in the high single digit area and
earnings per share from continuing operations down 7 percent.

On June 10 at 8:30 a.m. ET, the Company will hold its Investor and Analyst
Conference to update the investment community on key areas of the business.
All presentations will be webcast live at homedepot.com in the Investor
Relations section.

The Home Depot will conduct a conference call today at 9 a.m. ET to discuss
information included in this news release and related matters. The conference
call will be available in its entirety through a webcast and replay at
homedepot.com in the Investor Relations section.

At the end of the first quarter, the Company operated a total of 2,238 retail
stores, which included 1,973 The Home Depot stores in the United States
(including the Commonwealth of Puerto Rico, the territory of the U.S. Virgin
Islands and the territory of Guam), 178 stores in Canada, 75 stores in Mexico
and 12 stores in China. The Company employs more than 300,000 associates. The
Home Depot's stock is traded on the New York Stock Exchange (NYSE: HD) and is
included in the Dow Jones industrial average and Standard & Poor's 500 index.

To provide clarity about the Company's operating performance for the recently
completed fiscal quarter, the Company supplemented its reporting of net
earnings and earnings per share with non-GAAP measurements to reflect the
impact of the store rationalization charge, business rationalization charges,
and related restructuring charges. The Company believes such non-GAAP
measurements provide management and investors with meaningful information to
understand and analyze the Company's performance. However, this supplemental
information should not be considered in isolation or as a substitute for the
GAAP measurements. A reconciliation of the supplemental information to the
comparable GAAP measurements can be found in the attached schedule.

Certain statements contained herein constitute "forward-looking statements" as
defined in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may relate to, among other things, the demand for
our products and services, net sales growth, comparable store sales, impact of
cannibalization, store openings and closures, state of the economy, state of
residential construction, housing and home improvement markets, commodity
price inflation and deflation, implementation of store initiatives,
continuation of reinvestment plans, net earnings performance, earnings per
share, capital allocation and expenditures, liquidity, return on invested
capital, management of the Company's purchasing or customer credit policies,
the effect of charges, the planned recapitalization of the Company, timing of
the completion of such recapitalization, the ability to issue debt on terms
and at rates acceptable to us and financial outlook. Such forward-looking
statements are based on currently available information and current
assumptions, expectations and projections about future events. You are
cautioned not to place undue reliance on our forward-looking statements. Such
statements are not guarantees of future performance and are subject to future
events, risks and uncertainties - many of which are beyond our control or are
currently unknown to us - as well as potentially inaccurate assumptions that
could cause actual results to differ materially from our expectations and
projections. Such risks and uncertainties include but are not limited to those
described in Item 1A, "Risk Factors," and elsewhere in our Annual Report on
Form 10-K for our fiscal year ended February 1, 2009.

Forward-looking statements speak only as of the date they are made, and we do
not undertake to update such statements other than as required by law. You are
advised, however, to review any further disclosures we make on related
subjects in our periodic filings with the Securities and Exchange Commission.

THE HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED MAY 3, 2009 AND MAY 4, 2008
(Unaudited)
(Amounts in Millions Except Per Share Data and as Otherwise Noted)

Three Months
Ended % Increase
------------
5-3-09 5-4-08 (Decrease)
------ ------ -----------
NET SALES $16,175 $17,907 (9.7)%
Cost of Sales 10,725 11,835 (9.4)
------- -------
GROSS PROFIT 5,450 6,072 (10.2)

Operating Expenses:
Selling, General and Administrative 4,042 4,900 (17.5)
Depreciation and Amortization 428 444 (3.6)
------- -------
Total Operating Expenses 4,470 5,344 (16.4)
------- -------

OPERATING INCOME 980 728 34.6

Interest (Income) Expense:
Interest and Investment Income (5) (3) 66.7
Interest Expense 180 167 7.8
------- -------
Interest, net 175 164 6.7
------- -------

EARNINGS BEFORE PROVISION FOR INCOME
TAXES 805 564 42.7

Provision for Income Taxes 291 208 39.9

------- -------
NET EARNINGS $514 $356 44.4%
======= =======

Weighted Average Common Shares 1,683 1,679 0.2%

BASIC EARNINGS PER SHARE $0.31 $0.21 47.6

Diluted Weighted Average Common Shares 1,689 1,683 0.4%

DILUTED EARNINGS PER SHARE $0.30 $0.21 42.9

Three Months
SELECTED HIGHLIGHTS Ended % Increase
--------------------
5-3-09 5-4-08 (Decrease)
------- ------- -----------
Number of Customer Transactions 310 314 (1.3)%
Average Ticket (actual) $52.67 $57.36 (8.2)
Weighted Average Weekly Sales
per Operating Store (in thousands) $552 $616 (10.4)
Square Footage at End of Period 235 237 (0.8)
Capital Expenditures $172 $449 (61.7)
Depreciation and Amortization (1) $453 $474 (4.4)%

(1) Includes depreciation of distribution centers and tool rental
equipment included in Cost of Sales and amortization of deferred
financing costs included in Interest Expense.

THE HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF MAY 3, 2009, MAY 4, 2008 AND FEBRUARY 1, 2009
(Amounts in Millions)

5-3-09 5-4-08 2-1-09
------- ------- -------
(Unaudited) (Unaudited) (Audited)

ASSETS
Cash and Short-Term Investments $2,220 $779 $525
Receivables, net 1,283 1,571 972
Merchandise Inventories 11,428 12,637 10,673
Other Current Assets 1,383 1,353 1,192
------- ------- -------
Total Current Assets 16,314 16,340 13,362
------- ------- -------

Property and Equipment, net 25,894 27,113 26,234
Goodwill 1,134 1,210 1,134
Other Assets 425 933 434
------- ------- -------
TOTAL ASSETS $43,767 $45,596 $41,164
======= ======= =======

LIABILITIES AND STOCKHOLDERS' EQUITY
Short-Term Debt $- $495 $-
Accounts Payable 6,901 7,861 4,822
Accrued Salaries and Related
Expenses 1,077 1,029 1,129
Current Installments of Long-
Term Debt 1,768 300 1,767
Other Current Liabilities 3,802 4,434 3,435
------- ------- -------
Total Current Liabilities 13,548 14,119 11,153
------- ------- -------

Long-Term Debt 9,667 11,339 9,667
Other Long-Term Liabilities 2,558 2,432 2,567
------- ------- -------
Total Liabilities 25,773 27,890 23,387
------- ------- -------

Total Stockholders' Equity 17,994 17,706 17,777
------- ------- -------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $43,767 $45,596 $41,164
======= ======= =======

THE HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS ITEMS EXCLUDING CERTAIN
ADJUSTMENTS (NON-GAAP)
FOR THE THREE MONTHS ENDED MAY 3, 2009 AND MAY 4, 2008
(Unaudited)
(Amounts in Millions Except Per Share Data)

Three Months Ended 5-3-09
------------------------------------
As Adjusted
Actuals Adjustments(1) (Non-GAAP)
------- -------------- -----------

Net Sales $16,175 $221 $15,954

Gross Profit 5,450 29 5,421

Total Operating Expenses 4,470 146 4,324

Operating Income 980 (117) 1,097

Net Earnings $514 $(73) $587

Diluted Earnings Per Share $0.30 $(0.04) $0.35

Three Months Ended 5-4-08
------------------------------------
As Adjusted
Actuals Adjustments(1) (Non-GAAP)
------- -------------- -----------

Net Sales $17,907 $- $17,907

Gross Profit 6,072 (10) 6,082

Total Operating Expenses 5,344 533 4,811

Operating Income 728 (543) 1,271

Net Earnings $356 $(341) $697

Diluted Earnings Per Share $0.21 $(0.20) $0.41

Note: Certain amounts in Diluted Earnings Per Share may not foot due to
rounding.

(1) Adjustments are comprised of store rationalization charges related to
closing of 15 stores and the removal of 50 stores from our future
growth pipeline, business rationalization charges related to the exit
of EXPO, THD Design Center, Yardbirds and HD Bath businesses, as well
as net sales of those exited businesses during the period from closing
announcement to actual closing, and charges related to restructuring
of support functions.

SOURCE The Home Depot

Financial Community: Diane Dayhoff, Vice President of Investor Relations,
+1-770-384-2666, diane_dayhoff@homedepot.com; or News Media: Paula Drake, Sr.
Manager, Corporate Communications, +1-770-384-3439, paula_drake@homedepot.com