Home Depot Third Quarter Earnings Fall 27%

Atlanta, GA, November 13, 2007--Home Depot in the third quarter reported net earnings that were off 27% to $1.1 billion, or $0.60 per share, compared with $1.5 billion, or $0.73 per diluted share, in the same period in fiscal 2006.

The company reported earnings from continuing operations of $1.1 billion, or $0.59 per share, off from $1.3 billion, or $0.65 per share in third quarter of 2006.

Sales for the third quarter declined 3.5% to $19 billion, reflecting negative same-store sales of 6.2%.

Analysts were expecting earnings of $0.60 a share on sales of $19.43 billion.

"We are facing a tough environment as housing indicators continue to deteriorate,” said CEO Frank Blake. “Our financial performance in the third quarter reflects these tough conditions. But we are making significant improvements in our business and we will continue to invest thoughtfully for the long-term health of the company."

The company said it expects earnings for 2007 from continuing operations to decline by as much as 11% from last year, on a 52-week basis. It said its full year will include 53 weeks of operating results, with the 53rd week adding about $0.05 to its per-share earnings outlook.