Home Depot profit slides 8.9% in the Q3, beats Street

Atlanta Home Depot reported Tuesday that its third-quarter earnings fell 8.9% as the housing and renovation markets remained weak. But its profit exceeded Wall Street expectations.

The home-improvement retailer also raised its full-year earnings outlook as lower costs helped it top third-quarter expectations. CEO Frank Blake said the company has seen signs of stabilization in real estate and has added market share in the quarter.

Home Depot said declines in the average checkout receipt eased a bit in the quarter, falling 7.1% to $51.89, compared with 8.2% for the year to date.

Net income was $689 million for the quarter ended Nov. 1. Revenue fell 8% to $16.36 billion. Analysts expected revenue of $16.27 billion.

Same-store sales fell 6.9%.

On Monday, Lowe's Cos. reported third-quarter profit fell 30% as sales declined 3%. Lowe's also observed that some of the hardest-hit home markets are stabilizing and said it expects this year's fourth quarter to be stronger than last year's.