HD posted a 44% increase in quarterly profits but failed to beat investor expectations. This came shortly after competitor Lowe's increased its full-year outlook. HD's U.S. same store sales fell 8.6% compared to the 6.6% drop that Lowe's experienced. In addition, there was news that housing construction had reached an all-time low, thus taking more away from HD's profit news.
HD saw a 3 cent per share loss in its Q4, as well as a 17% drop in revenue to $14.6 billion.
In Q3 2008 (ended Nov. 2, 2008), HD reported net income of $756 million, a decrease of 31% from the prior-year quarter. Sales were down by 6.2% to $17.8 billion, and same store sales were down by 8%. Although results are better than expected, HD has been hit hard by the economic recession and the housing market slump.
Net sales at The Home Depot fell 3.4% during the first quarter of fiscal 2008 and comparable store sales fell 6.5% during the same period. The retailer is continuing to struggle with the downturn in the housing market and U.S. economy and is scaling back its previous expansion plans.
Home Depot announced that it is cutting previous plans to open approximately 50 stores in the U.S. this year. The retailer also plans on closing 15 stores that have been performing below company expectations within the next two months, putting the jobs of 1,300 employees at risk. The new plans will result cost Home Depot a $586 million charge in expenses related to store shutdowns, etc.
Home Depot announced that it would be firing 10% of its 5,000 employees currently working at the company's Atlanta headquarters. Management cited tough market conditions and poor expectations for 2008 as reasons for the layoffs.
Home Depot decided to buy back 289.6 million shares worth $10.7 billion on the expiry of its ‘Dutch Auction’. The company had earlier announced that it will buy the shares in a price range of 39-44, but owing to difficult market conditions, it cut down the range to 37-42.
Home Depot sells its HD Supply (business-to-business construction supplies) business to three private equity firms for about $8.5 billion.
On July 10th, Home Depot cuts its projections for annual profit due to the recent housing slump. Stock plummets for the next month, exacerbated by concerns about a weak sale price for Home Depot Supply to private equity investors.
Home Depot announces quarterly earnings. They announce a profit drop of 29.5% and a net income loss of 30%.
Home Depot announces labeling of "green" products to appeal to its more environment-focused consumers.
