The Home Depot Updates 2009 EPS Guidance

The Home Depot Presents Strategic Priorities and Outlines Long-Term Operating Targets; Updates 2009 EPS Guidance

ATLANTA, June 10 -- The Home Depot will today outline its key strategic priorities and discuss its long-term operating targets at its 2009 Investor and Analyst Conference. In addition, the Company has updated its 2009 EPS guidance.

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Today's conference will begin at 8:30 a.m. ET and will be available in its entirety through a live webcast and replay at homedepot.com in the Investor Relations section.

Strategic Priorities

The Company will discuss its three areas of strategic focus and the specifics behind each: (1) customer service, (2) product authority and (3) productivity and efficiency driven by disciplined capital allocation.

-- The Company's focus on customer service is anchored on the principles
of taking care of associates, putting customers first and simplifying
the business.
-- The Company's focus on product authority includes an emphasis on
re-establishing a merchandising driven business, providing product
that meets customer project needs, and building tools for effective
implementation.
-- The Company's approach to driving productivity and efficiency will be
achieved through disciplined capital allocation focused on the
existing core retail business, transforming the supply chain and
improving information technology.

Long-Term Operating Targets

The Company believes that its strategic priorities, along with a correction in the home improvement market, will allow it to achieve an operating margin of approximately 10 percent and a return on invested capital of approximately 15 percent.

Updated FY2009 EPS Guidance

Today the Company is updating its FY2009 EPS guidance and now expects earnings per share from continuing operations to be flat to down 7 percent from last year. On an adjusted basis, the Company now expects earnings per share from continuing operations to decline by 20 to 26 percent. The Company previously announced its expectation that earnings per share from continuing operations in FY2009 would be down 7 percent from last year, and down 26 percent on an adjusted basis.

The Company reaffirmed its sales, comparable store sales and gross margin guidance for the 2009 fiscal year. The Company still expects sales to decline by approximately 9 percent, comparable store sales to be high single digit negative and for gross margin expansion to be flat to slightly positive.

Source: The Home Depot