<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
FORM 10-Q
(MARK ONE)
<TABLE>
<C> <S>
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
</TABLE>
FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2000
OR
<TABLE>
<C> <S>
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
</TABLE>
FOR THE TRANSITION PERIOD FROM ______________ TO ______________
COMMISSION FILE NUMBER 1-8207
------------------------
THE HOME DEPOT, INC.
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
DELAWARE 95-3261426
(State or other jurisdiction (I.R.S. Employer
of Identification Number)
incorporation or organization)
2455 PACES FERRY ROAD 30339
ATLANTA, GEORGIA (Zip Code)
(Address of principal
executive offices)
</TABLE>
(770) 433-8211
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last
report.)
------------------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes /X/ No / /
------------------------
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
$.05 PAR VALUE 2,313,539,855 SHARES, AS OF MAY 19, 2000
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
THE HOME DEPOT, INC. AND SUBSIDIARIES
INDEX TO FORM 10-Q
APRIL 30, 2000
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION: PAGE
- ------------------------------ -----------
<S> <C>
Item 1. Financial Statements
CONSOLIDATED STATEMENTS OF EARNINGS--
Three-Month Periods Ended April 30, 2000 and May 2,
1999................................................... 3
CONSOLIDATED CONDENSED BALANCE SHEETS--
As of April 30, 2000 and January 30, 2000............. 4
CONSOLIDATED STATEMENTS OF CASH FLOWS--
Three-Month Periods Ended April 30, 2000 and May 2,
1999................................................... 5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME--
Three-Month Periods Ended April 30, 2000 and May 2,
1999................................................... 6
NOTES TO CONSOLIDATED CONDENSED
FINANCIAL STATEMENTS.................................. 7
Item 2. Management's Discussion and Analysis of Results
of Operations and Financial Condition............... 8-11
Item 3. Quantitative and Qualitative Disclosures about
Market Risk............................................ 11
<CAPTION>
PART II. OTHER INFORMATION:
- ---------------------------
Item 4. Submission of Matters to a Vote of Security Holders. 11
<S> <C>
Item 5. Other Information................................. 11
Item 6. Exhibits and Reports on Form 8-K.................. 11
Signature Page............................................ 12
Index to Exhibits......................................... 13
</TABLE>
2 of 13
<PAGE>
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
THE HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
--------------------------
APRIL 30, MAY 2,
2000 1999
(IN MILLIONS, EXCEPT PER SHARE DATA) ------------ -----------
<S> <C> <C>
Net Sales................................................... $ 11,112 $ 8,952
Cost of Merchandise Sold.................................... 7,838 6,386
------------ -----------
Gross Profit.............................................. 3,274 2,566
Operating Expenses:
Selling and Store Operating............................... 2,028 1,584
Pre-Opening............................................... 25 22
General and Administrative................................ 204 150
------------ -----------
Total Operating Expenses................................ 2,257 1,756
Operating Income........................................ 1,017 810
Interest Income (Expense):
Interest and Investment Income............................ 11 3
Interest Expense.......................................... (1) (8)
------------ -----------
Interest, Net........................................... 10 (5)
------------ -----------
Earnings Before Income Taxes............................ 1,027 805
Income Taxes................................................ 398 316
------------ -----------
Net Earnings............................................ $ 629 $ 489
============ ===========
Weighted Average Number of Common
Shares Outstanding........................................ 2,308 2,217
Basic Earnings Per Share.................................... $ 0.27 $ 0.22
============ ===========
Weighted Average Number of Common
Shares Outstanding Assuming Dilution...................... 2,354 2,336
Diluted Earnings Per Share.................................. $ 0.27 $ 0.21
============ ===========
Dividends Per Share......................................... $ 0.04 $ 0.02
============ ===========
</TABLE>
3 of 13
<PAGE>
THE HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
APRIL 30, JANUARY 30,
2000 2000
(IN MILLIONS, EXCEPT SHARE DATA) --------- -----------
<S> <C> <C>
ASSETS
Current Assets:
Cash and Cash Equivalents................................. $ 1,202 $ 168
Short-Term Investments.................................... 8 2
Receivables, Net.......................................... 746 587
Merchandise Inventories................................... 6,398 5,489
Other Current Assets...................................... 210 144
------- -------
Total Current Assets.................................. 8,564 6,390
Property and Equipment, at cost........................... 12,508 11,890
Less: Accumulated Depreciation and Amortization........... 1,777 1,663
------- -------
Net Property and Equipment............................ 10,731 10,227
Long-Term Investments..................................... 15 15
Notes Receivable.......................................... 69 48
Cost in Excess of the Fair Value of Net Assets Acquired... 309 311
Other..................................................... 104 90
------- -------
$19,792 $17,081
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable.......................................... $ 3,464 $ 1,993
Accrued Salaries and Related Expenses..................... 643 541
Sales Taxes Payable....................................... 376 269
Other Accrued Expenses.................................... 789 763
Income Taxes Payable...................................... 364 61
Current Installments of Long-Term Debt.................... 30 29
------- -------
Total Current Liabilities............................. 5,666 3,656
Long-Term Debt, excluding current installments.............. 755 750
Other Long-Term Liabilities................................. 258 237
Deferred Income Taxes....................................... 87 87
Minority Interest........................................... 15 10
Stockholders' Equity:
Common Stock, par value $0.05. Authorized: 5,000,000,000
shares; issued
and outstanding--2,310,661,000 shares at 4/30/00 and
2,304,317,000 shares at 1/30/00......................... 116 115
Paid-In Capital........................................... 4,470 4,319
Retained Earnings......................................... 8,478 7,941
Accumulated Other Comprehensive Income.................... (45) (27)
------- -------
13,019 12,348
Less Shares Purchased for Compensation Plans.............. (8) (7)
------- -------
Total Stockholders' Equity................................ 13,011 12,341
------- -------
$19,792 $17,081
======= =======
</TABLE>
See accompanying notes to consolidated condensed financial statements.
4 of 13
<PAGE>
THE HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
----------------------------
APRIL 30, 2000 MAY 2, 1999
(IN MILLIONS) -------------- -----------
<S> <C> <C>
CASH PROVIDED FROM OPERATIONS:
- ------------------------------
Net Earnings................................................ $ 629 $ 489
Reconciliation of Net Earnings to Net Cash
Provided by Operations:
Depreciation and Amortization........................... 137 107
Increase in Receivables, Net............................ (160) (31)
Increase in Merchandise Inventories..................... (914) (654)
Increase in Accounts Payable and Accrued Expenses....... 1,731 1,198
Increase in Income Taxes Payable........................ 367 241
Other................................................... (67) (47)
------ -----
Net Cash Provided by Operations....................... 1,723 1,303
------ -----
CASH FLOWS FROM INVESTING ACTIVITIES:
- --------------------------------------
Capital Expenditures........................................ (673) (550)
Proceeds from Sales of Property and Equipment............... 19 19
Payments for Businesses Acquired, Net....................... (5) --
Purchases of Investments.................................... (6) --
Advances Secured by Real Estate, Net........................ (21) (3)
------ -----
Net Cash Used in Investing Activities................. (686) (534)
------ -----
CASH FLOWS FROM FINANCING ACTIVITIES:
- --------------------------------------
Repayments of Commercial Paper Obligations, Net............. -- (246)
Proceeds from Long-Term Borrowings, Net..................... 3 --
Repayments of Long-Term Debt................................ (3) (6)
Proceeds from Sale of Common Stock, Net..................... 87 63
Cash Dividends Paid to Stockholders......................... (92) (44)
Minority Interest Contributions to Partnership.............. -- 5
------ -----
Net Cash Used in Financing Activities................. (5) (228)
------ -----
Effect of Exchange Rate Changes on Cash and Cash
Equivalents............................................... 2 1
Increase in Cash and Cash Equivalents....................... 1,034 542
Cash and Cash Equivalents at Beginning of Period............ 168 62
------ -----
Cash and Cash Equivalents at End of Period.................. $1,202 $ 604
====== =====
</TABLE>
See accompanying notes to consolidated condensed financial statements.
5 of 13
<PAGE>
THE HOME DEPOT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
--------------------
APRIL 30, MAY 2,
2000 1999
(IN MILLIONS) --------- --------
<S> <C> <C>
Net Earnings................................................ $629 $489
Other Comprehensive Income:
Foreign Currency Translation Adjustments.................. (18) 28
---- ----
Total Other Comprehensive Income...................... (18) 28
---- ----
Comprehensive Income........................................ $611 $517
==== ====
</TABLE>
See accompanying notes to consolidated condensed financial statements.
6 of 13
<PAGE>
THE HOME DEPOT, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
- ------------------------------------------------
Basis of Presentation--The accompanying consolidated condensed financial
statements have been prepared in accordance with the instructions to Form 10-Q
and do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the opinion
of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. These
statements should be read in conjunction with the consolidated financial
statements and notes thereto included in the Company's Annual Report on
Form 10-K for the year ended January 30, 2000, as filed with the Securities and
Exchange Commission (File No. 1-8207).
7 of 13
<PAGE>
THE HOME DEPOT, INC. AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
The data below reflect selected sales data, the percentage relationship
between sales and major categories in the Consolidated Statements of Earnings
and the percentage change in the dollar amounts of each of the items.
<TABLE>
<CAPTION>
THREE MONTHS ENDED PERCENTAGE
-------------------- INCREASE
APRIL 30, MAY 2, (DECREASE) IN
2000 1999 DOLLAR AMOUNTS
--------- -------- --------------
<S> <C> <C> <C>
SELECTED CONSOLIDATED
STATEMENTS OF EARNINGS DATA
Net Sales................................................... 100.0% 100.0% 24.1%
Gross Profit................................................ 29.5 28.7 27.6
Operating Expenses:
Selling and Store Operating............................. 18.3 17.7 28.0
Pre-Opening............................................. 0.2 0.2 13.6
General and Administrative.............................. 1.8 1.7 36.0
------- ------- ------
Total Operating Expenses............................ 20.3 19.6 28.5
Operating Income.................................... 9.2 9.1 25.6
Interest Income (Expense):
Interest and Investment Income.......................... 0.1 0.0 266.7
Interest Expense........................................ 0.0 (0.1) (87.5)
------- ------- ------
Interest, Net....................................... 0.1 (0.1) (300.0)
Earnings Before Income Taxes........................ 9.3 9.0 27.6
Income Taxes................................................ 3.6 3.5 25.9
------- ------- ------
Net Earnings............................................ 5.7% 5.5% 28.6%
======= ======= ======
SELECTED CONSOLIDATED SALES DATA
Number of Transactions (000's).............................. 222,600 185,200 20.2%
Average Sale Per Transaction................................ $ 49.53 $ 47.97 3.3
Weighted Average Weekly Sales
Per Operating Store (000's)................................. $ 892 $ 878 1.6
Weighted Average Sales
Per Square Foot............................................. $ 429 $ 425 0.9
</TABLE>
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<PAGE>
THE HOME DEPOT, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
(CONTINUED)
FORWARD-LOOKING STATEMENTS
- --------------------------
Certain written and oral statements made by The Home Depot, Inc. and
subsidiaries (the "Company") or with the approval of an authorized executive
officer of the Company may constitute "forward-looking statements" as defined
under the Private Securities Litigation Reform Act of 1995. Words or phrases
such as "should result," "are expected to," "we anticipate," "we estimate," "we
project" or similar expressions are intended to identify forward-looking
statements. These statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from the Company's historical
experience and its present expectations or projections. These risks and
uncertainties include, but are not limited to, unanticipated weather conditions;
stability of costs and availability of sourcing channels; the ability to
attract, train and retain highly-qualified associates; conditions affecting the
availability, acquisition, development and ownership of real estate; general
economic conditions; the impact of competition; and regulatory and litigation
matters. Caution should be taken not to place undue reliance on any such
forward-looking statements, since such statements speak only as of the date of
the making of such statements. Additional information concerning these risks and
uncertainties is contained in the Company's filings with the Securities and
Exchange Commission, including the Company's Annual Report on Form 10-K for the
year ended January 30, 2000.
RESULTS OF OPERATIONS
- ------------------------
Net sales for the first quarter of fiscal 2000 increased 24.1% to
$11.112 billion from $8.952 billion in the first quarter of fiscal 1999. The
increase was primarily attributable to the opening of 174 new stores (the
company was operating 971 stores at the end of first quarter of fiscal 2000
compared with 797 at the end of the first quarter of fiscal 1999) and a 7%
comparable store-for-store sales increase in the first quarter of fiscal 2000.
Gross profit as a percent of sales was 29.5% for the first quarter of fiscal
2000 compared to 28.7% for the first quarter of fiscal 1999. The increase was
primarily due to a lower cost of merchandise resulting from product line reviews
and increased sales of imported products, as well as the expansion of tool
rental centers. In addition, our investments in highly trained and experienced
associates contributed to this margin increase through their emphasis on sales
of complete projects and related products.
Total operating expenses as a percent of sales were 20.3% for the first
quarter of fiscal 2000 compared to 19.6% for the first quarter of fiscal 1999.
Selling and store operating expenses as a percent of sales increased to 18.3% in
the first quarter of fiscal 2000 from 17.7% in the same period of fiscal 1999.
The increase was primarily attributable to higher store selling payroll expenses
resulting from an earlier ramp-up of spring season staffing, general market wage
pressures, an increase in longevity and continued investment in customer service
initiatives. Pre-opening expenses as a percent of sales were 0.2% for the first
quarters of both fiscal 2000 and fiscal 1999. The Company opened 41 new stores
and relocated one store in the first quarter of fiscal 2000, compared to 37 new
stores and one store relocation in the first quarter of fiscal 1999. General and
administrative expenses as a percent of sales were 1.8% for the first quarter of
fiscal 2000 compared to 1.7% for the same period of fiscal 1999. The increase
was related to incremental expenses associated with long-term growth and
strategic initiatives, including Internet development and international
operations, as well as the opening of four new divisional offices during the
second half of fiscal 1999.
9 of 13
<PAGE>
Net interest income as a percent of sales was 0.1% for the first quarter of
fiscal 2000 compared to net interest expense of 0.1% for the comparable period
in fiscal 1999. Interest and investment income as a percent of sales was 0.1%
for the first quarter of fiscal 2000 compared to 0.0% for the same period in
fiscal 1999. The increase was due to higher investment balances resulting from
the proceeds of $500 million of 6-1/2% Senior Notes issued in the third quarter
of fiscal 1999 and cash flows from operations. Interest expense as a percent to
sales decreased to 0.0% for the first quarter of fiscal 2000 from 0.1% for the
first quarter of fiscal 1999. The decrease was due primarily to higher
capitalized interest during the first quarter of fiscal 2000 as a higher
percentage of owned stores were under construction compared to the same period
in fiscal 1999.
The Company's combined federal and state effective income tax rate decreased
to 38.8% for the first quarter of fiscal 2000 from 39.2% for the first quarter
of fiscal 1999. The decrease was attributable to higher state tax credits in the
first quarter of fiscal 2000 compared to the same period in fiscal 1999.
Net earnings as a percent of sales were 5.7% for the first quarter of fiscal
2000 compared to 5.5% for the first quarter of fiscal 1999, reflecting a higher
gross profit rate partially offset by higher operating expenses as a percent of
sales, as described above.
Diluted earnings per share were $0.27 for the first quarter of fiscal 2000
compared to $0.21 for the first quarter of fiscal 1999.
LIQUIDITY AND CAPITAL RESOURCES
Cash flow generated from store operations provides the Company with a
significant source of liquidity. Additionally, a significant portion of the
Company's inventory is financed under vendor credit terms. During the first
quarter of fiscal 2000, the Company opened 41 stores and relocated one store.
For the remainder of fiscal 2000 the Company plans to open approximately 159 new
stores including two additional Villager's Hardware test stores, and relocate 5
existing Home Depot stores. It is anticipated that approximately 88% of these
locations will be owned, and the remainder will be leased. The Company also
plans to open approximately 240 stores, including relocations, in fiscal 2001.
The Company has two operating lease agreements totaling $882 million for the
purpose of financing construction costs of certain new stores. Under the
operating lease agreements, the lessor purchases the properties, pays for the
construction costs and subsequently leases the facilities to the Company. The
leases provide for substantial residual value guarantees and include purchase
options at original cost on each property. The Company financed a portion of its
new stores in fiscal 1997, 1998 and 1999, as well as an office building in
fiscal 1999, under the operating lease agreements and anticipates utilizing
these facilities to finance selected new stores and an office building in fiscal
2000. In addition, some stores opening during fiscal 2000 will be leased
individually, and it is expected that many locations may be obtained through the
acquisition of land parcels and construction or purchase of buildings. The cost
of new stores to be constructed and owned by the Company varies widely,
principally due to land costs, and currently averages approximately
$13.2 million per location. The cost to remodel and/or fixture stores to be
leased averages approximately $4.2 million per store. In addition, each new
store requires approximately $3.2 million to finance inventories, net of vendor
financing.
During fiscal 1999, the Company issued $500 million of 6-1/2% Senior Notes
("Senior Notes"). The Senior Notes are due on September 15, 2004, and pay
interest semi-annually on March 15 and September 15 of each year. The Senior
Notes may be redeemed by the Company at any time, in whole or in part, at a
defined redemption price plus accrued interest. The net proceeds from the
offering were used to finance a portion of the Company's capital expenditure
program, including store expansions and renovations, for working capital needs
and for general corporate purposes.
The Company has a commercial paper program that allows borrowings up to a
maximum of $800 million. As of April 30, 2000, there were no borrowings
outstanding under the program. In connection with the program, the Company has a
back-up credit facility with a consortium of banks for up
10 of 13
<PAGE>
to $800 million. The credit facility, which expires in September 2004, contains
various restrictive covenants, none of which is expected to impact the Company's
liquidity or capital resources.
As of April 30, 2000, the Company had $1.21 billion in cash and cash
equivalents. Management believes that its current cash position, the proceeds
from short-term investments, internally generated funds, funds available from
its $800 million commercial paper program and the ability to obtain alternate
sources of financing should enable the Company to complete its capital
expenditure programs, including store openings and renovations, through the next
several fiscal years.
IMPACT OF INFLATION AND CHANGING PRICES
Although the Company cannot accurately determine the precise effect of
inflation on its operations, it does not believe inflation has had a material
effect on sales or results of operations.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company has not entered into any transactions using derivative financial
instruments or derivative commodity instruments and believes that its exposure
to market risk associated with other financial instruments (such as investments
and borrowings) and interest rate risk is not material.
PART II. OTHER INFORMATION
<TABLE>
<S> <C>
ITEM 4. SUBMISSION OF MATTER TO A VOTE OF SECURITY HOLDERS
During the first quarter of fiscal 2000, no matters were
submitted to a vote of security holders.
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
11.1 Computation of Basic and Diluted Earnings Per Share
27. Financial Data Schedule (only submitted to SEC in
electronic format)
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter ended
April 30, 2000.
</TABLE>
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<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.
<TABLE>
<S> <C> <C>
THE HOME DEPOT, INC.
---------------------------------------------
(Registrant)
By: /s/ ARTHUR M. BLANK
-----------------------------------------
Arthur M. Blank
President & CEO
/s/ CAROL B. TOME
-----------------------------------------
Carol B. Tome
Senior Vice President Finance
Treasurer
</TABLE>
<TABLE>
<C> <S> <C>
May 25, 2000
-------------------
(Date)
</TABLE>
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<PAGE>
THE HOME DEPOT, INC. AND SUBSIDIARIES
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT DESCRIPTION
- ------- -----------
<C> <S>
11.1 Computation of Basic and Diluted Earnings Per Share
27. Financial Data Schedule (only submitted to SEC in electronic
format)
</TABLE>
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<PAGE>
Exhibit 11.1
THE HOME DEPOT, INC. AND SUBSIDIARIES
COMPUTATION OF BASIC AND DILUTED
EARNINGS PER SHARE
<TABLE>
<CAPTION>
Three Months Ended
--------------------------------
April 30, May 2,
2000 1999
-------------- --------------
(In Millions, Except Per Share Data)
<S> <C> <C>
BASIC
- -----
Net Earnings Available to Common
Shareholders $ 629 $ 489
Weighted Average Number of
Common Shares Outstanding 2,308 2,217
-------- --------
Basic Earnings Per Share $ 0.27 $ 0.22
======== ========
DILUTED
- -------
Net Earnings Available to Common
Shareholders $ 629 $ 489
Tax-Effected Interest Expense Attributable
to 3-1/4% Convertible Subordinated Notes -- 5
-------- --------
Net Earnings Available to Common
Shareholders Assuming Dilution $ 629 $ 494
-------- --------
Weighted Average Number of
Common Shares Outstanding 2,308 2,217
Effect of Potentially Dilutive Securities:
3-1/4% Convertible Subordinated Notes -- 72
Employee Stock Plans 46 47
-------- --------
Weighted Average Number of Common Shares
Outstanding Assuming Dilution 2,354 2,336
-------- --------
Diluted Earnings Per Share $ 0.27 $ 0.21
======== ========
</TABLE>
Employee stock plans represent shares granted under the Company's employee stock
purchase plan and stock option plans, as well as shares issued for deferred
compensation stock plans. Shares issuable upon conversion of the Company's
3-1/4% Notes were included in weighted average shares assuming dilution for
purposes of calculating diluted earnings per share prior to their conversion in
October 1999. To calculate diluted earnings per share for fiscal 1999, net
earnings are adjusted for tax-effected net interest and issue costs on the
3-1/4% Notes (prior to conversion to equity in October 1999) and divided by
weighted average shares assuming dilution.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-28-2001
<PERIOD-END> APR-30-2000
<CASH> 1,202
<SECURITIES> 8
<RECEIVABLES> 746
<ALLOWANCES> 0
<INVENTORY> 6,398
<CURRENT-ASSETS> 8,564
<PP&E> 12,508
<DEPRECIATION> 1,777
<TOTAL-ASSETS> 19,792
<CURRENT-LIABILITIES> 5,666
<BONDS> 0
0
0
<COMMON> 116
<OTHER-SE> 12,895
<TOTAL-LIABILITY-AND-EQUITY> 19,792
<SALES> 11,112
<TOTAL-REVENUES> 11,112
<CGS> 7,838
<TOTAL-COSTS> 7,838
<OTHER-EXPENSES> 2,257
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (10)
<INCOME-PRETAX> 1,027
<INCOME-TAX> 398
<INCOME-CONTINUING> 629
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 629
<EPS-BASIC> 0.27
<EPS-DILUTED> 0.27
</TABLE>
