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Dreary Housing Market Nails Home Depot

Third-quarter net income plunges 27%

By Jim O'Neill, Newser User

Posted Nov 13, 2007 7:31 AM CST

(Newser) – A weak housing market hammered Home Depot’s third quarter, sending revenues down 4% and cutting net income 27%, reports the Wall Street Journal. The Atlanta-based retailer today said net income fell to $1.09 billion compared to $1.49 billion a year ago. “We are facing a tough environment as housing indicators continue to deteriorate,” said CEO Frank Black.

The home-improvement retailer, plagued by poor sales and tough competition, projected an 11% decline in its fiscal-year earnings, worse than the 7-9% decline it originally estimated. It also said it would reconsider completing a stock buy-back plan until conditions improved. Home Depot shares traded at $28.46 Monday and fell to $27.59 in pre-market trading this morning.

The Home Depot store is shown Monday, Aug. 13, 2007 in North Miami, Fla. (Associated Press)

Customers shop at a Home Depot, Monday, Aug. 13, 2007 in Chicago, Ill. (Associated Press)

Home Depot Inc. CEO Frank Blake speaks during an interview with The Associated Press, Friday, Sept. 21, 2007 in Atlanta. (AP Photo/John Bazemore) (Associated Press)

A colorful display of 3M Painter's tape lines the shelves of a Home Depot store Wednesday, April 25, 2007. (Associated Press)

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Third-quarter net income plunges 27%

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Dour Housing Market Slams Home Depot Q4 Results

Profits drop 27%, and the company says 2008 isn't looking very bright

Goldman Posts $428M Loss

It's the second time it's ever lost money as a public company

Apple Profit Shoots Up 125%

...and that's without any new product launches

Bank of America Loses $2.2B as Loans Sour

Investment revenues up, but consumers default on nearly $10B

Dow Up 21 After Rally Loses Steam

Dow hits new 2009 high but falls back amid light volume

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Third-quarter net income plunges 27%

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OTHER STORIES ON OUR RADAR

housing market • corporate earnings • Home Depot • third quarter earnings

MOST POPULAR STORIES

[ By Views ]

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More Newser Stories

Dour Housing Market Slams Home Depot Q4 Results

Profits drop 27%, and the company says 2008 isn't looking very bright

Goldman Posts $428M Loss

It's the second time it's ever lost money as a public company

Apple Profit Shoots Up 125%

...and that's without any new product launches

Bank of America Loses $2.2B as Loans Sour

Investment revenues up, but consumers default on nearly $10B

Dow Up 21 After Rally Loses Steam

Dow hits new 2009 high but falls back amid light volume

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Newser By Users

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