Home Depot 2000 Annual Report Download - page 4

To our stockholders, customers and associates
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It is an honor and a privilege to write this letter for the first time as President and CEO
of The Home Depot. I come to this Company with respect for its past, a deep appreci-
ation of its powerful culture and tremendous enthusiasm for the great opportunities
that are in front of us. I am eager to expand upon our history of unparalleled growth,
enviable trust and brand recognition built on outstanding customer service, broad mer-
chandise assortments and the lowest prices in the industry.
In deciding to join The Home Depot, I looked at this business as would any investor. By
every standard I could find, I joined a runaway winner. Now that I am here and have
met every Home Depot store manager, I am more convinced of that than ever.
This is a company with a proud heritage, powerful track record, strong balance sheet
and unmatched resources. First and foremost, our associates are central to our finan-
cial success and our longstanding relationships with our customers. They operate in a
boundary-less environment, where excitement and new ideas are part of the fabric of
our Company. They are backed by terrific support from Home Depot’s vendors and ser-
vice partners and the strongest balance sheet in retailing.
Our long-term stockholders also appreciate the strength of this Company’s culture,
which encourages entrepreneurship, fosters new ideas and adaptation and relishes com-
petition. These are familiar characteristics of great companies where I’ve had the
opportunity to develop and hone my skills over the past 30 years. At Home Depot, the
foundation is in place and we have an infinite capacity to continue to grow. What
remains is executing on our potential after a relatively difficult year in fiscal 2000.
Results, Achievements, Milestones For the fiscal year, Home Depot posted record earn-
ings and solid sales gains. At some companies, that might be enough. A slowing economy
in the second half of the year pressured sales and margins, resulting in performance that
was inconsistent with historic standards and below our expectations. Twice within the past
decade this Company has rebounded strongly from slower economic conditions, emerging
as a stronger and more formidable competitor. We are committed to doing it again.
Summarizing the fiscal year:
•Sales totaled $45.7 billion, a 19% increase for the year.
•We opened 204 new stores, ending the year with 1,134 stores.
•Net earnings reached $2.6 billion, an 11% increase for the year.
•Fiscal 2000 diluted earnings per share were $1.10, compared to $1.00 per share
in the previous year.
“we have an infinite capacity to grow
robert l. nardelli, President and chief executive officer
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