Established 1999
     
8,000 companies from USA and India.  
   
Search over 25,500 news articles and 8,000 companies earnings    
 
Market Update : 
The Home Depot Q4 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 4:51 PM ET March 03 2009


(Continued)

Email article | Print article

 
We’re really focused on just asking our customers every time they shop with us if they would like to use their private label credit card. We’re not going to push credit at them but we certainly encourage them to use it and we have factored in our best thinking as it relates to credit in the guidance that we’ve given.

Gregory Melich - Morgan Stanley

Okay, great, so you expect to see that could drop a little bit in terms of percentage, like it did last year?

Carol B. Tome

I think that’s actually very reasonable, yeah.

Gregory Melich - Morgan Stanley

Okay, great. And then on CapEx, for anyone there, if you think about it longer term, the billing that you are doing this year, which makes I guess a lot of sense given where we are in, on a five-year view, what do you think that needs to be or should be, if we were thinking out longer term?

Francis Blake

Well, I think we’ve said in the past in terms of applying CapEx to new stores that we see a constrained opportunity but there’s still some opportunity, so I think we’ve talked about average -- over time, a little over 1% growth in new square footage, around 1.5%, 1.4% growth in new square footage. So as you go forward, as communities shift, as you have to follow different geographies, they will -- we’ll continue to put in some new square footage but it is going to be significantly less, obviously, than it has been in the past.

And there are other things that we obviously are looking at closely. We’ll continue to spend CapEx on our building out our new supply chain on the IT side, as I said in my comments, we’re going to be spending this year, observing how, what the results are in Canada with the new enterprise wide system that they have in place, because if we were to decide to do that, that would obviously require some resources as well.

Carol B. Tome

And as we look out, we can’t imagine a scenario where our capital spending would ever exceed our annual depreciation and amortization expense. And as a reminder, the RDCs are not capital intensive. In 2009, we’ll be spending about $89 million in support of our RDC investment.

Gregory Melich - Morgan Stanley

That’s great. Thanks.

Operator

We’ll go next to Budd Bugatch with Raymond James.

Budd Bugatch - Raymond James & Associates

Hi. Thank you for taking my question. Good morning. Can you talk, Carol, the linearity of that basis point of deleverage for every comp point of deleverage? At 13 basis points, how linear is that as that moves up and down? Obviously the comps are a big number now.

Carol B. Tome

Right. Well, we feel pretty good about that. Budd, you know, this is an art, not a science. Could it move a couple of basis points if the comps were worse than we thought? Sure, but we feel pretty good about that.


$45.93
1.32%
click on symbol for profile



  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17

 


 
Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites.
Market data: BATS Exchange. Inc.

350 Fund Managers Interviews - 10-year Annual earnings on 4,600 U.S. companies - 20-quarter Earnings on 3,800 U.S. companies - 3,200 U.S. IPO Prospectuses
- 2,100 Economic data releases from U.S., EU, UK, India, HK and Australia. 10-year Annual reports on 3,500 U.S. companies -
U.S. Earnings Calendar with 4,800 companies - 90,000 10-K reports - 26,000 Global markets news archive - 2,200 Earnings Conference Call Summaries

Other Sites:
© 1999-2012 123jump.com. All rights reserved