Home Depot (NYSE: HD) cut its annual forecasts for revenue [subscription required], same-store sales, and earnings. The company said that it now expects 2007 fiscal year earnings to fall 15%. Same-store sales should fall in the single digits and revenue will be off as much as 2%.
The company also said it would launch a tender offer for 250 million shares.
The huge home improvement retailer has now gone a long way to prove that Bob Nardelli, its former CEO who was so unpopular with investors, had very little, if anything, to do with the company's poor fortunes.
Nardelli may have been arrogant and too well-paid, but it was high oil prices and a damaged housing market that killed HD's stock.
Douglas A. Mcintyre is a partner at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
7-10-2007 @ 8:24AM
Michael Schneider said...
Many analysts and commentators had been saying (last year) that investors were misunderstanding Home Depot and the company would not be affected by housing because people would still be fixing up their homes- perhaps that notion added to Nardelli's downfall.Funny how you don't hear that kind of talk much anymore. (Nevertheless, if you look at a chart of Home Depot stock over the past couple of years it has moved up).
The housing mess may be hitting Home Depot but you wouldn't know that from the explosion in fix it up, sell it, flip it reality shows on TV. A good item on the surge in housing shows in the face of housing's decline is in the Frontier section (left side at http://www.Barrelomedia.com.