Home Depot guidance up: A sign of consumer spending?
Filed under: Company News, Economy, Earnings
The Home Depot (HD), by far the largest supplier of home improvement items at retail, said its financial results would be better than expected for the current fiscal year. That probably means homeowners are doing a little more spending than saving and contractors may be seeing a brightening of their prospects.
The company said that it is updating its FY2009 EPS guidance and now expects earnings per share from continuing operations to be flat to down 7 percent from last year. On an adjusted basis, the HD now expects earnings per share from continuing operations to decline by 20 percent to 26 percent.
Home Depot also said it was intensifying its focus on several initiatives including customer service. That may make people wonder why it was not a priority before. HD said it would also more carefully monitor asset allocation and its supply chain. It would seem that those matters should have been important all along.
Because Home Depot's sales were $72 billion last year, it is probably a good proxy for national spending on home improvement. If so, its new guidance is a positive economic indicator, one more sign that the recession is ending.
Douglas A. McIntyre is an editor at 24/7 Wall St.



























Reader Comments (Page 1 of 1)
6-10-2009 @ 8:22AM
sgentilejr said...
The Home Depot store in my area is virtually empty of customers and only has one checkout line open and there is no waiting in line at the one check out register that is open.
4 years ago there were 4 to 6 check outs always open at this same store and there were lines waiting at the checkouts.
Also HD has once again begun placing fliers in the local papers to drum up business, something it had discontinued doing several years ago in this area.
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6-10-2009 @ 10:39AM
JJacksonCPA said...
Your article is ridiculous. You obviously never read the press release about which you are writing.
Home Depot made it clear that profits are only coming due to the fact that they have eshued all loans, and are now self-funding, and have cut costs dramatically. Sales are deeply down.
Lowes, their big competitor, is likely to suffer much worse, given that they are increasing their loans, taking out new ones, opening new stores, and increasing their costs, expecting some kind of recovery, like you. They will be bankrupt in the end, whereas HD will suffer but will come through ok in the end.
Lloyd Blanfeld, Chairman of Goldman Sachs, says he doesn't think we are anywhere near the end of this recession, and that it will be deep and long. S
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6-10-2009 @ 11:11AM
Richard said...
The local Home Depot uses self service checkouts. You might actually find one register with a live person. Still, it is better than shopping at the Lowe's stores in the Tidewater area. Went into one the other day and could not even find a person to assist me. I ended up walking out of the store without a purchase.
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6-10-2009 @ 11:28AM
Donovan said...
Gee, I've got a Home Depot and Lowe's, and Menards within 2 miles of each other. The garden area's in each had a decent amount of customers over the weekend, purchasing plants, mulch etc. However, very few customers in the main building areas. As a matter of fact, Home Depot was rerouting customers from the garden check out lines, to the main building check out. As main building cashiers, and employees were for the most part just standing around.
All in all, very few customers compared to what I remembered in years past, on a Saturday and Sunday.
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6-10-2009 @ 11:46AM
Chris w said...
Sgent---Me too --local store is down.
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6-10-2009 @ 11:54AM
RCWalton said...
no trust ceo
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6-10-2009 @ 12:30PM
jolietjeff@aol.com said...
Too bad the congress is not helping our dreams by DEPORTING the ILLEGALS stealing our jobs and forcing us to learn Spanish while destroying our economy!! Yes today the Aspundh crew cutting trees for ComED in Joliet IL was working and I could not find out any information because they all only spoke Spanish!! Why isn't our immigration department deporting them so Americans can work and why do we allow even legal immigrants to come to this country in these hard times especially if they are un-educated and cannot speak English. All Immigrants should have to pass the GED in English before they came come to this country since we want the best and brightest and not a bunch of idiots coming here to burder our economy!!
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6-10-2009 @ 12:10PM
RCWalton said...
Follow the money..These CEOs make most of their money on promoting stock..Like the last one who bailed with hundreds of millions. THe Wall St. folks were paid to keep getting and turning over mortg. backed securities, the regulators make their big money when they leave govt and work with those they regulated..>So folks let's all follow the money whenever we see a story like this that conflicts with our own common sense observations.
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6-10-2009 @ 12:10PM
Badabing said...
Corporations have figured out how to get an instant rise on their stock- just say their outlook or financials are better than expected- even though better just means less of a loss. The market reacts to anything now- just more BS to line the pockets of the super rich.
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6-11-2009 @ 1:27AM
davis said...
don't let them kid you, they raised their interest rate, added min. charge for open balance and when up on late charges,
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