Home Depot sees continued weakness in '08

ATLANTA The Home Depot today reported a drop in earnings for both its fourth quarter and fiscal 2007 results. The company added that it expects the weak housing market to continue to have an impact on its 2008 fiscal year.

The Home Depot reported fiscal 2007 fourth quarter consolidated net earnings of $671 million, or 40 cents per diluted share, compared with $925 million, or 46 cents per diluted share, in the same period in fiscal 2006. Sales for the fourth quarter totaled $17.7 billion, a 1.5%increase from the fourth quarter of fiscal 2006. Comparable-store sales for the quarter declined 8.3%.

For fiscal 2007, the company reported consolidated earnings per diluted share decreased 15.1% to $2.37 on consolidated net earnings of $4.4 billion, compared to consolidated earnings per diluted share of $2.79 on net earnings of $5.8 billion in fiscal 2006. Comparable-store sales for the year declined 6.7%.

"This was a difficult year financially, but I believe the progress we made on our key priorities set the foundation for the long term health of our company," said Frank Blake, chairman and ceo. "I want to personally thank our associates, who remain passionately dedicated to improving the shopping experience for our customers."

For the fiscal year 2008, Home Depot said it expects a total sales decline of 4% to 5% and negative comps in the mid to high single digit range. Continuing operations earnings per share are expected to decline between 19% and 24%.