The locally based company, which operates 1,866 stores in North America, is on track to open 175 new units this year. It will continue its expansion in Canada and Mexico, and is "strategically positioned to enter China," according to Home Depot's 2005 sales and earnings target report. In addition, the company is in the midst of a $3.7 billion capital spending plan that is investing in store modernization and technology.
"We are clearly on track with the transformation of the company and our strategy of building multiple business platforms for solid, sustainable growth well into the future," said Bob Nardelli, Home Depot's chairman, president & CEO.
Company officials are predicting a year-over-year same-store sales increase of 4% to 7% during 2005, after last year's jump of 5%. Total sales are forecast to increase between 9% and 12% from $72.9 billion in 2004; earnings per share are expected to shoot up 10% to 14% from last year's $2.26.
The company also plans some new offerings in its stores. Executives promise more storage products, Hampton Bay lighting and fan products, fashion rugs and Ralph Lauren metallic paint. Home Depot also has a new partnership with LG Electronics to start carrying that company's home appliances in its stores.
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