World's largest home improvement retailer Home Depot announced that its Board of Directors authorized an additional $1 billion to repurchase outstanding shares, bringing the total authorized share repurchase program to $12 billion.
At the end of fiscal 2005, the Company had repurchased $9.7 billion since the program began in 2002.
"As a result of the hard work and dedication of their 345,000 associates, they achieved record financial results in 2005, including record sales, average ticket, gross margin, operating margin and net income," said Bob Nardelli, Chairman, President & CEO.
"The Company's relentless focus on strategy has enabled them to deliver earnings per share growth in excess of 20 percent in each of the last four years.
The board's decision supports their commitment of reinvesting in the business for growth and returning cash to their shareholders."
Cumulatively, over the past five years, the Company has returned over 58 percent of its net earnings to the Company's shareholders in the form of dividends and share repurchases.
The Home Depot has continued to demonstrate strong financial discipline, as evidenced by a return on invested capital of 22.4 percent for fiscal year 2005.
The Company also announced that its board of directors approved a fourth quarter dividend of 15 cents at its Investor and Analyst Conference on January 19, a 50 percent increase over last year.
This is the 76thconsecutive quarter the Company has paid a cash dividend. The dividend is payable on March 23 to shareholders of record on the close of business on March 9.
Founded in 1978, The Home Depot is the world's largest home improvement specialty retailer and the second largest retailer in the United States, with fiscal 2005 sales of $81.5 billion. The Company employs approximately 345,000 associates and has 2,051 stores in all 50 states.
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