Thread: Home Depot to Close 15 Stores, Recession Toll

Home Depot to Close 15 Stores, Recession Toll

MoneyNews
Thursday, May 1, 2008

ATLANTA -- Retailer Home Depot Inc, which has been battered by the slumping housing market, said on Thursday it plans to close 15 underperforming U.S. stores and will curb future store openings, sending its shares up 2 percent.
The home improvement industry leader said it expects a charge of about $586 million tied to the moves, with about $547 million pretax to be recognized in its first quarter. Excluding this charge, the company reiterated that per-share profit is still expected to fall as much as 24 percent for the year.

Many retailers are curbing store growth and cutting capital spending as recession worries and higher prices for gasoline and food lead consumers to pull back spending.

The weak housing market has compounded troubles for Home Depot and rival Lowe's Cos, which have both posted weaker profits as falling home values and slower sales curbed expenditures on big-ticket renovations.

Atlanta-based Home Depot has been upgrading existing stores, hiring more trade specialists and taking other steps to win back market share under Frank Blake, who took over as chief executive when Robert Nardelli resigned under criticism in early 2007.

Home Depot, which also faces increased competition as Lowe's expands to big U.S. cities and Canada, said it will no longer pursue the opening of about 50 stores that had been in its new-store pipeline. New store spending will be cut by about $1 billion over the next three years.

"We will invest in our core retail business, in this case our existing stores, which drive our most profitable sales," Blake said in a statement.

The retailer said it still plans to open 55 new stores this year, down from about 100 opened in 2007. It also reiterated that capital spending would be $2.3 billion this year, down from $3.6 billion last year.

Home Depot, which has more than 2,200 stores, said the stores to be closed account for less than 1 percent of its store portfolio.

The 15 store closures will affect 1,300 workers, many of whom will be offered posts at other stores. The stores to be closed are in Wisconsin, Ohio, New Jersey, Indiana, Kentucky, Louisiana, Minnesota, New York, North Dakota and Vermont.

Home Depot's shares were up 60 cents, or 2.1 percent, to $29.40 in morning trading on the New York Stock Exchange. Lowe's was up 47 cents, or 1.9 percent, to $25.66.

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I find many people in areas of South Florida would not shop at the Home Depot due to illegals harassing them in front of the stores. Lowes has them removed and many people have driven out or their way to that store for that reason. I guess no hurricanes last season must have really brought sales down even more.

thats why I posted it... I get people bugging me for work or money every time I go to Home Depot

I dont seem to have that problem at Lowes

Recession tolls my BUTT . They can't recover from their last CEO who walked out the door with a $220 Million Dollar balloon package .
Lowe's is doing great cause of good management . They just opened another new store here in Ocala,Fl . There stock is in good shape also . Home Depot made there own problems and stabbed us in the back with their Day Worker position

Home Depot, which has more than 2,200 stores, said the stores to be closed account for less than 1 percent of its store portfolio.

The only reason this is even in the news.......it's an election year. Just like the election, when Carville kept saying "Its the economy stupid", the day after the election, the economy disappeared from the front page.

Wasn't it Lowe's who called Christmas trees 'family' trees in their holiday )Christmas) catalog?

The 15 store closures will affect 1,300 workers, many of whom will be offered posts at other stores.

Will they relocate the day workers they harbor too?

Originally Posted by MyAmerica

Wasn't it Lowe's who called Christmas trees 'family' trees in their holiday )Christmas) catalog?

The 15 store closures will affect 1,300 workers, many of whom will be offered posts at other stores.

Will they relocate the day workers they harbor too?

lowes did quickly change the family tree wording when it was bought to their attention. You know in this Nation now , Your damn if you do and damn if you don't . There are NO illegal day workers round my youngest sons old or new store .

Wasn't it Lowe's who called Christmas trees 'family' trees in their holiday )Christmas) catalog?

your spot on.. I completely forgot about that

My local Home Depot has posted no loitering and they call the cops
no more Scum in the parking lot

Scum+ some creeps upfrom Mexico

The one on 163rd St. in Miami calls the police almost everyday. When the police show up and tell them to go they leave but do return later. Then they start looking into cars and the police come back. Unfortunately the Miami Dade Police Policy states you are not allowed to ask immigration status. In the City of Hollywood it is different as the police will take them right to the Border Patrol office in a neighboring city.