<p>The Home Depot Inc.'s core strategy of store modernization and expansion into new markets here and abroad will not change anytime soon, the company's chief executive said Thursday as he outlined strong earnings and sales expectations for 2005.</p><p>"It's pretty much chiseled in granite," CEO Bob Nardelli said of the company's core principles.</p><p>The comments came as the nation's largest home improvement store chain said it will add 175 new stores in fiscal 2005 and projected sales growth for the year of 9 percent to 12 percent and earnings per share growth of 10 percent to 14 percent.</p><p>During the Atlanta-based company's annual investor conference, Nardelli said Home Depot will keep its goals fixed on growth and store modernization. He elaborated during a question-and-answer session with reporters later in the day at the company's headquarters.</p><p>"That umbrella has served us very well," Nardelli said. "I'm not going to be too quick to change the headers."</p><p>Nardelli stressed, however, that new initiatives could be rolled out if there are changes in the marketplace.</p><p>"We're still in the sweetest spot in retail you can be in," he said at the investor conference.</p><p>In its forecast for 2005, Home Depot said comparable store sales, a key measure of sales at stores open at least a year, will increase 4 percent to 7 percent.</p><p>Home Depot shares fell 47 cents, or just over 1 percent, to close at $41.73 in trading on the New York Stock Exchange Thursday, when most stocks were pressured by higher oil prices and concerns about the economy.</p><p>Nardelli reiterated the company's plans to expand to China, though he did not say how many stores will be built there or when the first one would be built. Speaking to reporters later, Nardelli said the company has secured a long-term lease for a China headquarters building in Shanghai and company officials are on the ground looking at real estate options.</p><p>But, he said, the company is not ready to discuss a timeline for opening stores there.</p><p>Home Depot currently has 1,866 stores in the United States, Canada and Mexico.</p><p>"We continue to see room for new store growth," Nardelli said. "Part of our strategy is to grow beyond the United States."</p><p>Home Depot is scheduled to report its fourth-quarter 2004 and year-end earnings on Feb. 22.</p><p>Chief financial officer Carol Tome said Thursday that for fiscal 2004, which ends Jan. 31, Home Depot expects to record sales growth of 12.5 percent to $72.9 billion. The company said it anticipates reporting earnings per share for the year of $2.26, an increase of 20 percent over the prior year and in line with analysts' consensus forecast.</p><p>Company officials said Home Depot will spend $600 million this year on employee training and development, a key initiative as the chain tries to improve its customer service.</p><p>Merchandising and marketing chief John Costello said Home Depot will aggressively push new advertising and its effort to attract new customers. Men, women and couples ages 25-44 are the company's top targeted customer group. Costello said the chain also wants to lure in people who are over 50 and first-time home buyers.</p><p>On the customer service front, Home Depot will focus on improving store atmosphere, employee helpfulness and the ease of finding products, said Carl Liebert III, senior vice president of operations. Making sure aisles are clear and uncluttered and the length of checkout is short also are important, he said.</p><p>___</p><p>On the Net:</p><p>HASH(0x28656e4)</p>
