Home Depot Hit by Housing Market; 3Q Profit Falls Nearly 27 Percent With Fewer Renovations
ATLANTA (AP) -- The Home Depot Inc. reported a 26.8 percent drop in third-quarter profits Tuesday as a deteriorating housing market put a crimp on home renovations.
The nation's largest home improvement store chain said it earned $1.09 billion, or 60 cents a share, for the three months ending Oct. 28, compared with a profit of $1.49 billion, or 73 cents a share, for the same period a year ago.
Frank Blake, the Atlanta-based company's chairman and CEO, said the company is trying to weather the housing market slump and looking for future opportunities.
"We are facing a tough environment as housing indicators continue to deteriorate. Our financial performance in the third quarter reflects these tough conditions," Blake said in a statement. "But we are making significant improvements in our business and we will continue to invest thoughtfully for the long-term health of the company."
The results matched Wall Street expectations, as analysts surveyed by Thomson Financial were expecting earnings of 60 cents a share.
Revenue in the quarter dropped 3.5 percent to $18.96 billion, compared with $19.65 billion the same period a year ago, and fell short of analyst expectations of $19.39 billion.
