ATLANTA — Home improvement retailer Home Depot said last month that it will increase capital spending 21 percent during fiscal 2003 to enhance the customer shopping experience and deliver sales growth of between 9 and 12 percent and earnings growth of between 9 and 14 percent. Company officials said the Atlanta-based firm expects to open 200 stores in fiscal 2003 and confirmed current estimates of 10 percent sales growth and 21 to 23 percent earnings growth for the fiscal year ending Feb. 2, 2003.
Company officials added that Home Depot expects to launch a $250 million store-remodeling program in the coming year.
Over the past year, Home Depot's financial performance has disappointed investors who have grown concerned about the company's growth prospects amid competition from rival Lowe's, which is gaining new sales in lucrative markets.
“The company is going to have to put up some numbers before Wall Street regains confidence,” said Ted Parrish, a portfolio manager at G.W. Henssler & Associates in Atlanta.
Sources close to Home Depot have indicated that most of the new locations will include rental departments. Home Depot Rentals, No. 11 on the RER 100, has more than 530 in-store rental departments.
