The Home Depot, Atlanta, GA, reported first-quarter profit of $1 billion, compared with $1.5 billion in the same period in fiscal 2006.
Sales for the first quarter totaled $21.6 billion, a 0.6% increase from the first quarter of fiscal 2006. Total sales in the retail segment declined 4.3% to $18.5 billion, and comparable store sales declined 7.6%.
Total sales in the HD Supply segment grew by 46% to $3.1 billion, reflecting sales from acquired businesses. Organic sales were down 6.5%.
The housing market continues to be a challenge, and erratic weather conditions across the United States negatively affected our spring selling season,” said Frank Blake, chairman & CEO.
Earlier this year Home Depot announced that it was conducting a review of strategic alternatives for its HD Supply segment, including a possible sale. That review is ongoing, and the company said it will wait to comment on it until it is completed.
“There’s a lot of things we think about during a strategic evaluation process. One is interest from other people in our assets. We’ve got some strong interest in the assets. And the other is our own internal evaluation of what’s best for our shareholders,” Blake said.
Blake said HD believes the home improvement market will stay soft throughout 2007.
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