SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 25, 1997
THE HOME DEPOT, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-8207 95-3261426
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
2727 Paces Ferry Road,Atlanta,Georgia 30339
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (770)433-8211
(Former name or former address, if changed since last report.)
Item 5. Other Events
On February 25, 1997, the Registrant issued a press release reporting on the
results for the fourth quarter and year of the 1996 fiscal
year. The text of the Release is as follows:
THE HOME DEPOT REPORTS 35% INCREASE IN NET EARNINGS FOR FOURTH QUARTER OF
FISCAL 1996; 28% INCREASE FOR YEAR
ATLANTA, GA (February 25, 1997) - The Home Depot, North America's largest
home improvement retailer, today reported record fourth quarter net earnings
of $251 million ($0.52 per share) for the fourth quarter of fiscal 1996, the
14 week period ended February 2, 1997. The net earnings were a 35% increase
from net earnings of $185 million ($0.39 per share) in the 13-week fourth
quarter of fiscal 1995.
Sales for the fourth quarter of fiscal 1996 were $4.959 billion, up 32% from
$3.752 billion in the fourth quarter of fiscal 1995. Comparable store sales
for the quarter, on a 13-week adjusted basis, rose 7% from the previous year.
For fiscal 1996, the 53 weeks ended February 2, 1997, The Home Depot achieved
record net earnings of $938 million ($1.94 per share), up 28% from $732
million ($1.54 per share) in the 52-week period of fiscal 1995.
Sales for fiscal 1996 increased 26% to $19.535 billion from $15.470 billion
in the previous year. Comparable store sales, on a 52-week adjusted basis,
were up 7% from the previous year. Inventory turnover improved to 5.6 in
fiscal 1996 from 5.5 in fiscal 1995.
"The record earnings reported today are the combined result of effective
merchandising, efficient operations, unsurpassed customer service and the
continuing loyalty of our customers," said Bernard Marcus, The Home Depot
Chairman and Chief Executive Officer. "We are extremely happy with the
results for the quarter and fiscal year, and we look forward to another year
of strong earnings growth in fiscal 1997."
During the fourth quarter of fiscal 1996, The Home Depot opened 33 new stores
and relocated 2 stores. At the end of fiscal 1996, the company had a total
of 512 stores, including 483 Home Depot stores and 5 EXPO Design Centers in
the U.S. and 24 Home Depot stores in Canada, with an aggregate of
approximately 54 million square feet of selling space.
Founded in 1978, The Home Depot is traded on the New York Stock Exchange
under the symbol "HD" and is included in the Standard & Poor's 500 Index.
For the past four years, the company has been ranked by Fortune magazine as
America's most admired retailer.
<TABLE>
<CAPTION>
THE HOME DEPOT, INC.
STATEMENT OF EARNINGS
FOURTH QUARTER
(Unaudited)
(000's Omitted)
Three Months Ended Twelve Months Ended
<S> <C> <C> <C> <C>
02-02-97 01-28-96 02-02-97 01-28-96
(14 weeks) (13 weeks) (53 weeks) (52 weeks)
NET SALES $4,958,540 $3,751,884 $19,535,503 $15,470,358
COST OF MERCHANDISE SOLD 3,519,536 2,663,422 14,101,423 11,184,772
GROSS PROFIT 1,439,004 1,088,462 5,434,080 4,285,586
OPERATING EXPENSES:
Selling and Store Operating 926,502 703,681 3,521,429 2,783,956
Pre-Opening 17,069 11,548 54,709 52,342
General & Administrative 90,195 69,994 324,292 269,464
TOTAL OPERATING EXPENSES 1,033,766 785,223 3,900,430 3,105,762
OPERATING INCOME 405,238 303,239 1,533,650 1,179,824
INTEREST AND INVESTMENT
INCOME 12,762 5,852 25,577 19,597
INTEREST EXPENSE (10,519) (376) (16,087) (4,148)
INTEREST, NET 2,243 5,476 9,490 15,449
MINORITY INTEREST INCOME
(EXPENSE) (1,946) 13 (8,371) 30
(NOTE 1)
EARNINGS BEFORE INCOME TAXES 405,535 308,728 1,534,769 1,195,303
INCOME TAXES 154,360 123,330 597,030 463,780
NET EARNINGS $ 251,175 $ 185,398 $ 937,739 $ 731,523
EARNINGS PER SHARE (NOTE 2) $ 0.52 $ 0.39 $ 1.94 $ 1.54
WEIGHTED AVG SHARES (NOTE 2) 499,361 479,147 487,752 477,977
</TABLE>
<TABLE>
<CAPTION>
Selected Highlights
<S> <C> <C> <C> <C>
CUSTOMER TRANSACTIONS 119,384 92,303 464,089 370,317
AVERAGE SALE ($) $ 41.53 $ 40.65 $ 42.09 $ 41.78
WEIGHTED AVERAGE WEEKLY
SALES PER STORE $ 720 $ 705 $ 803 $ 787
SQUARE FOOTAGE - END OF PERIOD ---- ---- 53,926 44,356
CAPITAL EXPENDITURES $319,700 $ 346,075 $ 1,248,211 $ 1,308,375
DEPRECIATION AND
AMORTIZATION $ 63,837 $ 51,847 $ 232,339 $ 181,205
</TABLE>
<TABLE>
<CAPTION>
Selected Balance Sheet Information
<S> <C> <C>
02-02-97 01-28-96
Cash and Short-Term Investments $ 558,436 $ 108,025
Merchandise Inventories 2,708,283 2,180,318
Current Assets 3,709,373 2,671,969
Property and Equipment, Net 5,437,046 4,461,024
Long-Term Investments 8,480 25,436
Total Assets 9,341,710 7,354,033
Current Liabilities 1,842,126 1,416,482
Long-Term Debt 142,593 720,080
Convertible Notes 1,104,000 ---
Stockholders' Equity 5,955,186 4,987,766
</TABLE>
Note 1: Minority Interest Income (Expense) has been reclassified from
Selling and Store Operating expenses.
Note 2: The Company's 3-1/4% Convertible Subordinated Notes issued in
October 1996 and the 4-1/2% Convertible Notes that were converted to equity
in March 1995 were dilutive and, accordingly, net earnings have been adjusted
for tax effected net interest and issue costs on the notes for purposes of
calculating earnings per share. Earnings were adjusted $6,292,000 for the
fourth quarter and $7,951,000 for the year-to-date calculation for fiscal
1996 and $2,415,000 for the year-to-date calculation for 1995.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
THE HOME DEPOT, INC.
(Registrant)
By:/s/Marshall L. Day
Marshall L. Day
Senior Vice President and
Chief Financial Officer
Date: February 25, 1997
