Home Depot posts 24% decline in Net Income

From WSJ:

Home Depot Inc. posted a 24% decline in fiscal second-quarter net income as Chief Executive Frank Blake said the company is continuing "to see pressure on our market and the consumer."

Still, the nation's largest home-improvement retailer refrained from cutting its fiscal-year outlook again, as Mr. Blake noted, "Despite the macroeconomic conditions, we saw improved execution in our merchandising and operations initiatives during the past quarter."

With the effect of rebate checks waning down, I am not sure if it's wise to keep the same outlook.  Of course, most likely, you will see an adjustment somewhere down the line.

 

For the quarter ended Aug. 3, Home Depot reported net income of $1.2 billion, or 71 cents a share, down from $1.59 billion, or 81 cents a share, a year earlier. Prior-year results included a 3-cent gain from discontinued operations. Net revenue fell 5.4% to $20.99 billion. Same-store sales declined 7.9%, or 7.2% on a comparable-week basis. Analysts polled by Thomson Reuters were for looking for earnings of 61 cents a share on $20.58 billion in revenue. Gross margin edged up to 33.2% from 33.1%.

Looking forward, Home Depot confirmed its prior projection for fiscal-year earnings to fall about 24%, coming in at the low end of previous guidance that had already been cut to a range of $1.72 to $1.84 a share on a sales decline of 5%. Analysts' latest estimates were for $1.71 in earnings on a 6% drop in revenue to $72.32 billion.

 

http://online.wsj.com/article/SB121914091680552677.html?mod=hps_us_whats_news

 

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