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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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The home improvement retailer quarterly sales decreased 17.3% to $14.6 billion on same-store sales fall of 13%. Net loss generated in the quarter was $54 million. Earnings per share plunged to 3 cents from 40 cents a year-ago quarter and estimates earnings per share decline of 7% in fiscal year.

 
Eric Bosshard - Cleveland Research

And in terms of staffing levels relative to sales, is there any adjustment being made in the model?

Marvin Ellison

No, it’s not -- I mean, we have an activity based system that is staffed based on departments, so an example would be when we have a department that is performing well, like our repair maintenance categories, you will see more associates in that area because sales are up. And when we have some departments that may be slightly down, you will see less associates based on the number of customers. So department by department, store by store, and we feel like that has served us well and we’ll continue that for 2009.

Eric Bosshard - Cleveland Research

And then lastly on that, is there any change in the minimum staffing target as the sales continue to contract?

Marvin Ellison

No, because we staff based on departments, we don’t look at minimum staffing by store. We focus on a department-by-department basis. If you look at our store, we are a store made up of many different, smaller stores - a hardware store, plumbing store, garden store so we think a department-by-department focus is the best method for us to serve our customers.

Eric Bosshard - Cleveland Research

Great. Thank you.

Diane Dayhoff

Augusta, we have time for one more question.

Operator

All right. That question will come from Chris Horvers with JPMorgan.

Christopher Horvers – JPMorgan

Yes, made it in. I was going to say best for last, but -- so first to clarify, we’ve received a number of questions about guidance, so it’s $1.37, down 7% -- that’s $1.27. Should we think about adjusting for that $132 million of one-time expenses in 4Q as well?

Carol B. Tome

Yes, when we said on an adjusted basis, EPS would be down around 26%, we’re adjusting out the expenses in 2008 and 2009, related to the business rationalization.

Christopher Horvers – JPMorgan

Right, so the point forecast is like $1.32-ish, something like that.


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