The Home Depot Inc HD
Q1 2013 Earnings Call Transcript

Transcript Call Date 05/21/2013

Operator: Good day, everyone, and welcome to today’s Home Depot First Quarter 2013 Earnings Conference Call. Today’s conference is being recorded.

Beginning today’s discussion is Ms. Diane Dayhoff, Vice President, Investor Relations. Please go ahead, ma'am.

Diane Dayhoff - VP, IR: Thank you, Mary, and good morning to everyone. Joining us on our call today are Frank Blake, Chairman and CEO of The Home Depot; Craig Menear, Executive Vice President, Merchandising, and Carol Tome, Chief Financial Officer and Executive Vice President, Corporate Services.

Following our prepared remarks, the call will be opened for analysts’ questions. Questions will be limited to analysts and investors, and as a reminder, we would appreciate it if the participants would limit themselves to one question with one follow-up please. If we are unable to get to your question during the call, please call our Investor Relations Department at 770-384-2387.

Before I turn the call over to Frank, let me remind you that today’s press release and the presentations made by our executives include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include, but are not limited to, those factors identified in the release and in our filings with the Securities and Exchange Commission.

Today’s presentations may also include certain non-GAAP measurements. Reconciliation of these measurements is provided on our website.

Now, let me turn the call over to Frank Blake.

Frank Blake - Chairman and CEO: Thanks you, Diane. And I'd like to start by saying our thoughts and prayers are with those who have stricken by violent storms in Oklahoma and throughout the southwest. Our Company and our associates are part of these communities and we will be working hard to be at help in the days and weeks ahead.

Now, on our results, sales for the first quarter were $19.1 billion, up 7.4% from last year. Comp sales were positive 4.3% and our diluted earnings per share were $0.83. Our U.S. stores had a positive comp of 4.8%. All three of our U.S. divisions posted positive comps for the quarter. For our northern division, in particular, this was a significant accomplishment given the dramatic difference between the unusually warm spring of 2012 and the relatively cold spring of 2013.

Our western division was our best performing division, driven by double-digit positive comps in most of the major markets in California. Our Florida markets also performed well with comps above the Company average. Internationally, our Canadian business had positive comps for the sixth quarter in a row and our Mexican business had another quarter of positive comps, making it 38 quarters in a row of positive comp growth.

As Craig will detail, while weather negatively impacted our seasonal and exterior businesses, our core interior project business remained strong throughout the quarter. This was encouraging and consistent with the view that the housing market is starting on the path to recovery. For the first time in the last several years, the growth rate in our pro customer segment outpaced the growth rate in the consumer segment. We've been tracking the relative growth rates of our pro and consumer segments as one indicator of the housing recovery.

Read our Earnings Call Transcript disclaimer.
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