The Home Depot reported fiscal 2007 second quarter consolidated net earnings of $1.6 billion compared with $1.9 billion in the same period in fiscal 2006.
Sales for the second quarter totaled $22.2 billion, a 1.8% decrease from the second quarter of fiscal 2006, reflecting negative comparable store sales of 5.2%, offset in part by sales from new stores.
In a conference call, Home Depot reported sales for HD Supply were down 7% overall, with organic sales down 10%.
While the challenging housing market continues to present us with a tough selling environment, our financial performance was in line with our expectations,” said CEO Frank Blake.
“… We believe the housing and home improvement markets will remain soft into 2008; we will continue to invest thoughtfully for the long-term health of the business.”
Pending Sale of HD Supply
On August 9, 2007, The Home Depot announced that it was in discussions with Bain Capital Partners, The Carlyle Group and Clayton, Dubilier & Rice for the purpose of restructuring the previously announced agreement for the sale of HD Supply. These discussions could result in changes to the terms and financing of the transaction, including a reduction in the $10.3 billion purchase price.