Bob Nardelli Home Quotations

Our thoughts are with everyone who has been affected by this tragic natural disaster. The Home Depot has an extensive history of providing support to our communities as they recover from natural disasters. Through these donations and future volunteer support from our associates, we will continue to play an integral role in our local communities and their rebuilding efforts during the upcoming months. As always, our associates shine their brightest when our communities face their darkest hours.

We are poised for dramatic growth over the next five years across our business. Our planned acquisition of Hughes Supply is a great example of how we are rapidly replicating in the professional market the same type of transformation that we brought to the home improvement retail market.

The tough economy has put tremendous pressure on fourth-quarter sales performance and increased competition for share of the consumers' wallets, ... While home improvement is a high priority for our customers, they are also facing immediate and dramatic pressures in a number of areas, including record cold weather and rising energy costs, investment losses, higher interest rates and increasing consumer debt levels.

We have embarked on a transformation of The Home Depot from a young, decentralized business toward a more mature and balanced company with predictable and sustainable growth potential,

We believe strongly in the fundamental strength of Home Depot,

This consolidation is an opportunity for Home Depot to better leverage operating efficiencies as we continue to grow our business,

Home Depot, as part of its DNA, really responds to catastrophic events that take place.

Home Depot is delivering strong financial results, with earnings and cash flow ahead of expectations,

The Home Depot is beginning to gain traction from the transformational initiatives launched last year, ... We introduced new products, increased the overall inventory levels in our stores, and introduced a cohesive, nationwide marketing program. Collectively, these initiatives helped us perform through a tough environment.

The home is the consumer's most important asset. Home ownership continues to grow and is an increasing benefit to us, ... Our (calendar) 2004 plan builds upon a strong strategic base and our financial strength positions us for future growth.