Home Depot’s first-quarter profit decline is due to a slumping housing market, the company reports.
Home Depot Inc.’s first-quarter profits fell 30 percent on a sales
increase of less than 1 percent.
Home Depot blamed much of the decline on the slumping U.S. housing
market. “The housing market continues to be a challenge, and
erratic weather conditions across the United States negatively affected our
spring selling season,” saidFrank Blake, chairman
and CEO. “We believe the home improvement market will remain soft throughout
The company reported a first-quarter profit of $1.05
billion, down from $1.48 billion in the first quarter of 2006. Sales for the
first quarter totaled $21.6 billion, up just 0.6 percent from the first quarter
On the retail side, quarterly sales dropped 4 percent to $18.5 billion,
with comparable-store sales down 8 percent. Meanwhile, sales for HD Supply grew
46 percent to $3 billion - although this increase reflects acquired businesses.
Last year, HD Supply was actively acquiring wholesale distributors. Last
February, however, the company announced plans to possibly shed the wholesale