Housing takes toll on Home Depot's quarter

ATLANTA Home Depot today reported fiscal 2007 third quarter consolidated net earnings of $1.1 billion, or 60 cents per diluted share, compared with $1.5 billion, or 73 cents per diluted share, in the same period in fiscal 2006.

The company reported that sales for the third quarter totaled $19 billion, a 3.5% decrease from the third quarter of fiscal 2006, reflecting negative comparable-store sales of 6.2%, offset in part by sales from new stores.

"We are facing a tough environment as housing indicators continue to deteriorate. Our financial performance in the third quarter reflects these tough conditions," said Frank Blake, chairman and ceo. "But we are making significant improvements in our business and we will continue to invest thoughtfully for the long-term health of the company."

Home Depot said it expects the weak housing market to continue to affect its growth for the remainder of 2007. The company anticipates that earnings per share from continuing operations, on a 52-week basis, will decline by as much as 11% from last year.