Home Depot swings to loss in Q4

Home Depot posted a fourth-quarter net loss of $54 million, compared to earnings of $671 million in the same quarter last year.

Same-store sales declined 13% in the quarter ended Feb. 1, a period that had one fewer week than last year's fourth quarter. Total fourth-quarter sales for the world's largest home improvement retailer were $14.6 billion, down 17.3% from the year-ago period.

CEO Frank Blake said the company will continue to invest in its stores and people. "Despite the difficult economic conditions, the company made important progress in key areas," he said. He pointed to customer service rating, high in-stock rates and an "effective new lower price campaign."

For the year, Home Depot posted net earnings of $2.26 billion, down from $4.395 billion. Comparable-store sales for the year declined 8.7%, as sales for the year were $71.3 billion, 7.8% below the prior year.

The company's fiscal year results include a $1.1 billion charge related to both the recently announced business rationalization charge of $387 million and the write-down of the company's investment in HD Supply of $163 million in the fourth quarter. They were also impacted by a $564 million store rationalization charge related to the closing of 15 stores and the removal of 50 stores from the company's new store pipeline taken earlier in the year.