The Home Depot Plans $2 Billion Share Repurchase

May 17, 2006  by in UnCategorized   

By Home Furnishings Business in Furniture Retailing on May 2006 The Home Depot’s board of directors has authorized actions to provide near-term enhancement for shareholders, which includes the approval of an additional $2 billion to repurchase outstanding shares.

In addition, the company has been given approval for the immediate repurchase of $2 billion of outstanding shares through an accelerated share repurchase program.

With the authorization, the home improvement retailer’s share repurchase authorization increased to $14 billion from $12 billion. Since 2002 and through April 30, the company has returned more than $10.3 billion of cash to shareholders through repurchases, repurchasing nearly 291 million shares.

“The company’s relentless focus on our strategy continues to deliver record results, including our recently announced record earnings per share in the first quarter of fiscal 2006,” said Bob Nardelli, chairman, president and chief executive officer. “The board’s decision today reinforces our confidence in the company’s strategic growth plans and our commitment to generate shareholder returns.”

The Home Depot has entered into an accelerated share repurchase agreement with Lehman Brothers, which will provide for the immediate purchase of about 53 million shares, bringing the total number of shares purchased to more than 344 million, about 15 percent of the outstanding shares since the start of the program in 2002.