While reporting its first quarter results, The Home Depot announced its intent to dispose of its interest in the underlying real estate of 15 EXPO Design Center stores. At some point in the future, these stores will close. Also, the company said it plans to convert five EXPO stores to The Home Depot store format.
In the first quarter of fiscal 2005, the company recorded $86 million of expense related to the anticipated disposition of its interest in the underlying real estate and $20 million of expense related to inventory markdowns. The remaining 34 EXPO stores are profitable and will continue operating. Affected EXPO customers will be served by existing The Home Depot and EXPO stores.