Home Depot reports 21 percent jump in 1Q profit

<p>The Home Depot said better customer service and strong sales helped it post a 21 percent jump in first-quarter profit.</p><p>The results, announced Tuesday, handily beat Wall Street expectations.</p><p>The nation's largest home improvement store chain said it earned $1.10 billion, or 49 cents a share, for the three months ending May 2, compared to a profit of $907 million, or 39 cents a share, in the same period a year ago.</p><p>Excluding the affect of an accounting change, the Atlanta-based company earned $1.18 billion, or 52 cents a share. Analysts surveyed by Thomson First Call were expecting earnings of 43 cents a share.</p><p>Revenue in the quarter was $17.55 billion, a 16.2 percent jump from the $15.10 billion it recorded a year ago.</p><p>"Our performance in the first quarter is the best illustration yet of how we executed our strategy to drive growth," chief executive Bob Nardelli said.</p><p>Same-store sales _ a measure that compares sales at stores open at least a year _ increased 7.7 percent in the quarter.</p><p>In particular, Home Depot cited customer satisfaction surveys of over 130,000 customers showing significant progress in enhancing the shopping experience.</p><p>Over the last year, the company has given its stores a makeover with more light, cleaner aisles and more helpful employees.</p><p>Also Tuesday, the company raised its guidance for the rest of the year. Home Depot said it expects 2004 earnings per share growth of 10 percent to 14 percent, up from its earlier guidance of 7 percent to 11 percent.</p><p>Home Depot ended the quarter with 1,740 stores in the United States, Canada and Mexico.</p><p>___</p><p>On the Net:</p><p>HASH(0x2865598)</p>

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