Home Depot: concerned about softness

Home Depot posted net earnings of $1.116 billion in the second quarter, down 7.2% from $1.202 billion in the same quarter last year. Comparable-store sales were negative 8.5%, as total sales declined 9.1% to $19.1 billion.

Comp-store sales for stores in the United States were negative 6.9%.

On Tuesday, Home Depot's chief rival Lowe's posted a second-quarter comp-store sales decline of 9.5%.

"Concerns about the housing market, rising unemployment and softness in the overall economy continue to pressure consumers," said Frank Blake, chairman and CEO. "Our business performed well in a down market, we captured market share and drove operating productivity. The combination made for a solid quarter relative to our plan."

The company expects 2009 sales will be down approximately 9% from last year. On that basis, it lifted its fiscal 2009 EPS guidance and now expects earnings per share from continuing operations to be flat to up 7% from last year.

At the end of the second quarter, Home Depot operated a total of 2,240 retail stores, which included 1,974 Home Depot stores in the United States