Home Depot’s profit declines 24%
Home Depot Inc. said Tuesday that its second-quarter profit sank 24% and reiterated its downbeat outlook for the year amid a weak housing market that shows no signs of recovery.
For the three months ended Aug. 3, the nation’s largest home improvement chain said its net income fell to $1.2 billion, or 71 cents a share. That’s down from $1.59 billion, or 81 cents, during the same period last year.
Meanwhile, revenue slid 5.4% to $21 billion and same-store sales fell 7.9%.
The results handily beat expectations as do-it-yourselfers began to take their hammers and paint brushes out of retirement. Analysts surveyed by Thomson Reuters had projected earnings of 61 cents a share on revenue of $20.58 billion.
Goldman Sachs analyst Matthew Fassler told investors in a research note that the better-than-expected results indicated a reprieve from an earlier slowdown by shoppers who postponed projects as the nation’s housing market slowed.
Still, the results paint a grim picture of the cost-conscious American consumer, and Atlanta-based Home Depot shares fell $1, or 3.7%, to $25.96.