Home Depot Reports 2Q Profit Drop

Atlanta - August 14 - The Home Depot Inc. reported Tuesday a 14.8% drop in second-quarter profit as sales slid, particularly at stores open at least a year. The results beat Wall Street expectations for continuing operations.

For the three months ended July 29, Home Depot said it earned $1.59 billion, compared with a profit of $1.86 billion for the same period a year earlier. Earnings from continuing operations totaled $1.52 billion in the second quarter.

The results from continuing operations excludes Home Depot’s wholesale distribution unit, HD Supply, which the company has agreed to sell to private-equity firms for $10.3 billion.

Revenue in the second quarter fell 1.8% to $22.18 billion, compared with $22.59 billion recorded in the same period a year earlier. Same-store sales fell 5.2%.

The company said it has been hurt by weakness in the housing market, which it expects to continue into next year.

“This is a difficult time and our performance reflects that,” CEO Frank Blake said during a conference call with analysts on Tuesday.

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