Home Depot’s Third Quarter Results Decline
posted by admin in Home DepotThe Home Depot reported fiscal 2007 third quarter consolidated net earnings of $1.1 billion compared with $1.5 billion in the same period in fiscal 2006.
Sales for the third quarter totaled $19 billion, a 3.5% decrease from the third quarter of fiscal 2006, reflecting negative comparable store sales of 6.2%, offset in part by sales from new stores.
We are facing a tough environment as housing indicators continue to deteriorate. Our financial performance in the third quarter reflects these tough conditions, said Frank Blake, chairman & CEO. But we are making significant improvements in our business and we will continue to invest thoughtfully for the long-term health of the company.
Given that the softness in the housing market is expected to continue for the rest of 2007 and the company’s commitment to invest in its key retail priorities, The Home Depot expects its earnings per share from continuing operations, on a 52-week basis, will decline by as much as 11% from last year.
The Home Depot remains committed to the $22.5 billion recapitalization plan announced in June. Since that time, the company has completed almost half, or $10.7 billion, of the recapitalization plan. Due to the volatility in the credit markets as well as the challenging housing and home improvement markets, the company believes it is prudent to take a cautious stance regarding the completion of the recapitalization until a more positive environment develops.
Tags: anc, business, company, crease, credit markets, Environment, health, Home Depot, Home Improvement, housing market, Improvements, lt, Operation, pace, StoresRelated posts
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