Home Depot’s first quarter net income slips on Home Services

Jan

Home Depot’s first quarter net income slips

posted by admin in Home Depot

The Home Depot Inc.’s net income dropped in the first quarter, as it endured a weakened spring selling season and continued to weather the soft housing market.

The Atlanta, Ga.-based home improvement retailer (NYSE: HD) operates nine stories in New Mexico, including locations in Albuquerque, Los Lunas, Rio Rancho, Santa Fe, Roswell and Alamogordo.

In the first quarter, Home Depot had net income of $1 billion on $21.6 billion in sales, compared with net income of $1.5 billion on $21.5 billion in sales in the first quarter of 2006. Earnings were 53 cents a share, compared with earnings of 70 cents a share in the first quarter of 2006.

Sales in the retail segment dropped 4.3 percent to $18.5 billion, and comparable store sales fell 7.6 percent. Sales in the HD Supply segment grew by 46 percent to $3.1 billion, reflecting sales from acquired businesses.

The housing market continues to be a challenge, and erratic weather conditions across the United States negatively affected our spring selling season, said Frank Blake, chairman and CEO. We believe the home improvement market will remain soft throughout 2007. We plan to continue our reinvestment plans for the long-term health of the business, understanding that it will put short-term pressure on earnings.

Earlier this year, Home Depot began a review of strategic alternatives for its HD Supply segment, including a possible sale. The company on Tuesday said the review is ongoing.