Based on the strong third-quarter performance, the company announced that it's raising its fiscal 2004 earnings per share growth guidance from 14-17% to 19-20%. Sales increased in all geographic areas, including Sacramento, CA; Wichita, KS; San Antonio, TX; Washington D.C. and New York Metro.

Comparable store sales rose 4.5 percent, but would have increased more if not for store cannibalization, Tome says. "Consistent with our operating strategy, we deliberately cannibalized our own stores in order to gain share and provide shopping convenience. This quarter we cannibalized about 16% of our stores, which impacted third-quarter comps by 2%," she said. Nonetheless, "we are tracking to have our best comp performance since 1999."

During the third quarter, Home Depot opened 38 new stores, making a current total of 1,826 stores. In particular, the retailer entered New York City with a new urban format and a similar store in Park Royal, West Vancouver, British Columbia. "Sales from new stores and stores that have been open for less than one year contributed 8.6% of our top line growth in the third quarter," Tome noted. Canada and Mexico continue to represent significant growth opportunities for Home Depot. "Our Mexico business is strong, with double-digit comp growth," said Bob Nardelli, chairman, president & CEO. Currently, Home Deport owns 10 stores in Mexico City and 42 stores throughout the country.