Home Depot 1999 Annual Report Download - page 7

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3
wOn the heels of fiscal 1998’s record performance,
many of our investors wondered, “What will
The Home Depot do for an encore?” The encore we
performed during fiscal 1999 is worthy of a “Bravo!”
response. We are extremely proud of our accom-
plishments during fiscal 1999, particularly because
they demonstrate the ongoing commitment of
201,000 associates who understand that superior
customer service is the key to success for them, the
Company and our investors.
We entered fiscal 1999 with confidence and a list
of goals, which fit into three main categories:
1.To continue a pattern of strong and consistent
sales and earnings growth.
2.To increase our ability to be a total solutions
provider to do-it-yourself and professional
home improvement customers.
3.To lead the marketplace to a better world.
We achieved all of our goals, exceeding most
of them. As a result, we further strengthened our
competitive position in the home improvement
industry and solidly positioned the Company for
long-term success.
Strong and Consistent Growth
Net earnings grew 44% during fiscal 1999, a key area
where we exceeded our goal.
One hundred sixty-nine new stores and a
10% increase in sales at existing stores contributed
to a 27% total sales gain for the year. A healthy
economic environment helped, but the strength in
sales was due mainly to new products and services,
sharper product assortments and customer service
enhancements.
We reduced product costs through efforts such as
product line reviews, and imports and logistics effi-
ciencies. These improvements gave us the financial
flexibility to make further customer service-related
investments in our stores, as well as invest in long-
term growth initiatives, even as we recorded our
14th consecutive year of record earnings and our
strongest year-over-year earnings gain since 1992.
We are firmly positioned to continue this pattern
of consistent growth. New stores are planned to
open at a steady rate of 21–22%. When combined
with many new initiatives to enhance customer ser-
vice, sales and productivity in our existing stores, we
Arthur M. Blank, President and Chief Executive Officer
To Our Stockholders, Customers and Associates: