Retail

Home Depet (HD): Things Get Nasty

The Home Depot (HD) today reported fiscal 2007 second quarter consolidated net earnings of $1.6 billion, or $0.81 per diluted share, compared with $1.9 billion, or $0.90 per diluted share, in the same period in fiscal 2006.Earnings from continuing operations in the fiscal 2007 second quarter were $1.5 billion, or $0.77 per diluted share, compared to fiscal 2006 second quarter earnings from continuing operations of $1.7 billion, or $0.82 per diluted share. The Company is now reflecting the results of HD Supply as a discontinued operation.

Sales for the second quarter totaled $22.2 billion, a 1.8 percent decrease from the second quarter of fiscal 2006, reflecting negative comparable store sales of 5.2 percent, offset in part by sales from new stores.

HD reiterated in its earnings outlook that it expects its earnings per share from continuing operations to decline by 12-15 percent for fiscal 2007. Consolidated earnings per share are expected to decline by 15-18 percent for fiscal 2007.

Douglas A. McIntyre

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