Home Depot Inc said it will buy back $1 billion of outstanding shares through an accelerated share repurchase program with Barclays Capital.

The world's largest home improvement retailer, which also reiterated its fiscal 2011 sales and earnings per share outlook on Monday, said the accelerated share repurchase was in addition to its announced plan to buy back about $2.5 billion of outstanding shares throughout 2011.

For the year, Home Depot expects sales to be up about 2.5 percent, and earnings per share from continuing operations of $2.20 a share, excluding share repurchases.

Home Depot shares, which closed at $36.65 on the New York Stock Exchange, were up 1.4 percent at $37.15 in after-hours trading.

(Reporting by Dhanya Skariachan; editing by Carol Bishopric)

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