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Market Update : 
The Home Depot Q4 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 4:51 PM ET March 03 2009


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We’ll go next to John Zolidis with Buckingham Research.

John Zolidis - Buckingham Research

Hi. Good morning. Just a clean-up question on the foreign currency. Can you tell us what the total impact to sales was in the fourth quarter, and if there was any material impact to the bottom line? And then what is anticipated in the guidance for foreign currency impact in 2009? Thank you.

Carol B. Tome

The impact to sales is about $320 million in the fourth quarter. There was no material impact to the bottom line and as we look out for 2009, included in our guidance is our view that the currencies will stay where they are, so we’re not assuming further strengthening of the U.S. dollar or any weakening as a point, so there is a year-over-year impact to ourselves because of where the currencies are today and that’s included in the guidance.

John Zolidis - Buckingham Research

Can you give us some help on what that might be and since you report the comps in U.S. dollars, is there maybe a 100 basis points impact from FX in that?

Carol B. Tome

That’s right, there’s about 100 basis points.

John Zolidis - Buckingham Research

Okay. Thank you.

Carol B. Tome

You’re welcome.

Operator

Our next question will come from Maggie Gilliam with Gilliam & Company.

Maggie Gilliam - Gilliam & Company

Could you comment on what is the status of the SAP system in Canada and what are your plans for implementing it in the U.S.? I know there has been a little bit of talk about simplifying it or making some modifications going forward. Thank you.

Francis Blake

Yes, sure. Good morning, Maggie. First, great credit to the Canadian team and our IT team for the implementation of the system. I mean, you look at major efforts like this and a lot of times, you run into some significant unanticipated issues. This was done on time and the Canadian team really did just an excellent job of getting it in place.

Now, going forward, we have the opportunity to figure out okay, what are the benefits, who do those benefits compare to our ongoing efforts to improve our infrastructure here in the U.S., and then assess kind of towards the end of 2009, what’s the best path forward for the United States?


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