Retailer The Home Depot Inc. posted a 26.8% drop in third-quarter profits. Home Depot predicted a decline of as much as 11% in earnings per share from continued operations because of persistent "softness in the [U.S.] housing market."
"We started the year with a more pessimistic view of the housing and home improvement markets than many," Frank Blake, the company's Chairman and CEO said. "It turns out we were not pessimistic enough."
Home Depot said it earned US$1.09 billion, or $0.60 a share, for the three months ending Oct. 28, compared with a profit of $1.49 billion, or $0.73 a share, for the same period a year ago. Revenue in the quarter dropped 3.5% to $18.96 billion, compared with $19.65 billion the same period a year ago. For the first nine months of the year, Home Depot said it earned $3.72 billion, or $1.94 a share, compared with a profit of $4.84 billion, or $2.32 a share, a 23% drop. Nine-month revenue fell 3.1% to $59.7 billion, compared with $61.62 billion recorded in the same period a year ago.