Alan Rifkin Given Quotations

We remain very positive on the home improvement sector and Home Depot's prospects, particularly given current valuation levels. Home Depot shares are currently trading in line with the five-year historic low forward price-to-earnings ratio, based on consensus estimates.

Given the demographics of the targeted Pier 1 consumer, we believe higher gas prices could limit spending levels and further impact comparable sales.

People are increasingly concerned, given what Wal-Mart said, that higher gas prices are going to hurt the spending power of the consumer.

I think people on the street were a little surprised that we weren't given full warning. Gift cards are increasing in importance and we think this season will represent 16 percent of sales.

While we believe Home Depot is one of the finest names in retailing, we continue to reiterate our cautious outlook on the shares, given the company's vulnerability to a potential slowdown in the housing environment.