Home Depot cuts outlook, reflects Supply sale

Home Depot announced today that given the announced sale of its HD Supply busines it now expects its earnings per share to decline by 15% to 18%, as compared to its previous guidance of earnings per share to be down 9% for the year. This new guidance also reflects a weaker housing market, according to the company. The company now expects total retail sales to decrease by 1% to 2% and comparable-store sales to be down in the mid-single digits.

"While we expect the housing market to remain challenging for the rest of 2007 and into 2008, we plan to continue our reinvestment plans for the long-term health of our business, understanding that it will put short-term pressure on earnings," said Carol Tome, cfo and evp of corporate services. "We are confident that over the long term, we will deliver productivity improvements and enhance returns on invested capital as the investments take hold."