Home Depot's Third -Quarter Net Falls 9 Percent
November 17, 2009,
[caption id="attachment_735" align="alignleft" width="225"] [/caption] ATLANTA-Even though Home Depot managed to slash into its expenses, third-quarter net income for the home-improvement chain still finished down 9 percent from last year, at $689 million.
An 8 percent decline in net sales, which totaled $16.4 billion in the quarter, offset identical 8.4 percent cuts in both selling, general and administrative expenses and cost of goods sold. The sales shortfall included a drop in same-store sales of 6.9 percent (7.1 percent for Home Depot's U.S. stores). Frank Blake, Home Depot's chairman and chief executive officer, commented in a company statement that the chain's results are facing "a great deal of pressure in the housing and home-improvement markets," but added that Home Depot still picked up market share in the quarter.
Based on the third-quarter numbers, Home Depot said it expects sales for the entire fiscal year to be off 9 percent.