Home Depot 2Q Earnings Off 15%

Atlanta, GA, August 14, 2007—Earnings for Home Depot in the second quarter fell 15% to $1.6 billion, or $0.81 per share, compared with $1.9 billion, or $0.90 per share a year ago.

Sales during the quarter were off 1.8% to $22.2 billion.  Same-store sales during the quarter declined 5.2%.

Analysts had estimated earnings of $0.72 per share on sales of $22.02 billion during the quarter.

"While the challenging housing market continues to present us with a tough selling environment, our financial performance was in line with our expectations," said Frank Blake, chairman  and CEO.

"We believe the housing and home improvement markets will remain soft into 2008," Blake said.

The company again said it expects its earnings from continuing operations to decline by 12-15% for fiscal 2007and consolidated earnings to fall by 15-18% for fiscal 2007.

The fiscal 2007 earnings per share outlook reflects 52 weeks and does not include the impact of the 53rd week. The company will have 53 weeks of operating results in its fiscal 2007 financial results. Home Depot projects that the 53rd week will add approximately three cents to its earnings per share outlook for fiscal 2007.

Home Depot also said its earnings outlook does not include  the sale of HD Supply or the effects of its $22.5 billion recapitalization plan. The company is trying to restructure the terms of the sale of HD Supply.