Home Depot 2013 Annual Report Download - page 2

Download and view the complete annual report

Please find page 2 of the 2013 Home Depot annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 66

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66

In scal year 2013, we grew sales for the fourth consecutive year, with positive sales in all three U.S.
Divisions, Canada and Mexico. Comparable store sales were up 6.8 percent; total sales were up 5.4
percent; and diluted earnings per share were up 25.3 percent.
In the U.S., comparable store sales were up 7.5 percent. This was the best comparable store sales
performance we have had in the U.S. since 1999. These results reect the benet of continued focus
on our strategic framework, as well as what we believe is the continued healing of the U.S. housing
market.
Our international businesses in both Canada and Mexico had positive comparable store sales for every
quarter of the year. This year continued the Mexican team’s record of consistent performance, with 41
quarters in a row of positive comparable store sales.
For our business’s strategic framework, we have borrowed from Jim Collins and focus on addressing
three priorities:
1) What we are passionate about: Customer Service;
2) What we want to be best in the world at: Product Authority for Home Improvement; and
3) What drives our economic engine: Disciplined Capital Allocation.
The lines between online and brick and mortar retail stores are increasingly blurring, and
interconnected retail is now part of the fabric of our business. Over 30 percent of our online orders are
picked up in a store, and for many of our product categories, our customers use the internet as their
primary source for research and product comparisons. Interconnected retail is a part of each one of our
three strategic priorities and provides us the opportunity to strengthen our performance in each element.
We are investing to improve the core functionalities of our website as well as our mobile web and
mobile app capabilities. And we will continue to drive a better interconnected experience for both our
do-it-yourself and pro customers.
We believe our more than 300,000 associates are a competitive advantage. For us, customer service
begins by investing in our associates, in their training and in their success. We are proud that we
continue to set company records for Success Sharing, our bonus program for our hourly associates. For
2013, our Success Sharing payout increased 25 percent versus last year and totaled almost a quarter of
a billion dollars. We have focused additional training on interconnected retail, adjusting our Customer
FIRST training to incorporate the interconnected retail experience. We continue to enhance our Buy
CUSTOMER SERVICE
Dear Shareholders: