The Home Depot Q4 2014 Investor Conference Call Notes

Fourth Quarter Results

• Sales $19.2 billion, up 8.3% from last year
• Comp sales were positive 7.9% for the full quarter.  U.S. store comps were positive 8.9%.
• U.S. stores positive comps 8.9%
• 9 departments had comps above the company average for the quarter.  They were: tools, lumber, millwork, lighting, décor, building materials, kitchen, bath, and hardware.  All other dept had positive comps in the mid-single digits.
• Millwork categories had double-digit comps in patio doors, windows, interior doors, and exterior doors.
• Maintenance and repair categories saw comps above the company average in products like water heaters, wiring devices, cleaning, conduit, and caulks.
• Décor products saw comps above the company average in vanities, bathroom fixtures, decorative holiday, interior lighting, and hard surface flooring.
• Transactions per ticket under $50, representing approximately 20% of U.S. sales, were up 3.1%.
• Transactions per ticket over $900, also 20% of U.S. sales, were up 10.3%.  Drivers behind big ticket purchases were appliances, water heaters, and installation categories like windows, roofing, and sheds.

Full year 2014 Results

• Comps for U.S. stores were positive 6.1%
• Online business grew over $1 billion, 36% growth rate.  Almost 40% of online orders were picked up in the store.
• Average ticket size grew 1.9%.
• Ended year with 2,269 stores

2015 Guidance

• Expect overall GDP growth and continued tailwind from the housing recovery will be the principle drivers of growth.
• Consensus 2015 GDP growth forecast calls for moderate growth, and most housing data points towards a continued moderate recovery in the U.S. housing market.
• Expect comp growth in the U.S. of approximately 4.5%.  GDP plus about 150 basis points.
• Mr. Menear commented “We’ve shared with you in the past that our number one priority is in stock.”
• Opening 6 stores in 2015, five in Mexico and one in Canada