The Home Depot posted its first ever annual sales decline and released a 2008 outlook. Home Depot reported that fourth-quarter profits declined more than 27%. It earned US$671 million, or $0.40 a share, in the three months ending Feb. 3, compared with a profit of $925 million, or $0.46 a share, in the same period a year earlier.
Despite an extra sales week, revenue in the quarter rose only 1.5% to $17.66 billion, compared with $17.4 billion a year earlier. Excluding that extra week, fourth-quarter sales declined 4.7% compared with a year ago. Revenue for fiscal 2007 declined 2.1% to $77.35 billion. Spokesman Ron DeFeo said that was the first ever annual sales decline for Home Depot.
Same-store sales declined 8.3% in the quarter. At the end of the fourth quarter, Home Depot operated 2234 stores in the United States, Canada, Mexico, and China.