Home Depot Lowers Sales, Profit Forecasts

Home Depot Inc. trimmed its profit and sales estimates for this year as it spends millions to reverse sales declines and compete more effectively.

Home Depot said it is raising capital spending 21% to $4 billion this year to open 200 new stores, upgrade technology and increase worker training to enhance service levels. The retailer, which has 1,500 stores, will spend $250 million this year to give the oldest stores a fresh look.

Home Depot said earnings for the year could fall between $1.67 and $1.77 a share.

Home Depot shares rose 26 cents to $22.43 on the NYSE.