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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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All in, when you look at everything, yeah, we’re very happy with where we are at.

Wayne Hood - BMO Capital Markets

Thank you.

Craig Menear

Thank you.

Operator

Our next question will come from Brian Nagel with UBS.

Brian Nagel – UBS

Good morning. I wanted to just follow-up; you commented in your prepared remarks about California and Florida, and seeing some signs of stabilization there and some weakness, some incremental weakness in other markets. I guess as we think about the trend of business throughout the country and how the trend is likely to change potentially as we go through 2009, are there regions of the country that are still uncharacteristically strong, that are helping to support comps? That’s one question.

And then the second, going back to California and Florida, as you’ve seen maybe signs of stabilization there, do you think that reflects, or to what degree does that reflect sales of foreclosed homes?

Francis Blake

Brian, a couple of comments. The first would be, just so that everybody is clear, they are still declining, so, it’s not stabilization in the sense of oh, okay, well, we’ve actually bottomed. This is just a rate of decline that is slowing.

The second, in terms of areas that are positive, as Craig called out in the weather-impacted areas, we’ve seen positive comps, so we’ve seen positive comps in our Gulf area, for example.

Brian Nagel – UBS

And then as far as foreclosures, are those helping to drive better -- or I guess less bad results?

Francis Blake

Yeah, I mean there is an advantage to existing housing turnover. That’s something clearly that is relevant to our business and clearly a lot of the turnover in those areas has been from foreclosed housing.

Craig Menear

We also see -- when you look at product categories, things like vinyl flooring, cleaning, in-stock carpet, all of those businesses and compared to the total company are relatively strong businesses and we think that that’s a combination of people that are beginning to fix up some of these homes but also the fact that there is high rent impact out there, where more people are renting.

Brian Nagel – UBS


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