Home Depot reports loss of $54M, but beats estimates

CHICAGO -- But adjusted results topped analysts' estimates, the shares of the nation's largest home improvement chain climbed nearly 11%.

The retailer lost 3 cents a share during the quarter, compared with a profit of $671 million, or 40 cents a share, a year ago. Excluding charges related to the closings and other items, the Atlanta-based company earned 19 cents a share.

Last month Home Depot said it planned to close Expo Design Centers, YardBIRDS, Design Centers and HD Bath, a bath remodeling business. The company has been hurt as fewer customers are buying homes and spending money on repairs and remodeling.

Home Depot has said it plans to eliminate 7,000 jobs, or about 2% of its 300,000 workers. Most of the cuts affect workers at the four businesses being closed.

"We expect the home improvement market in 2009 will remain just as challenging as 2008, but we will continue to invest in our associates and stores to set a strong foundation for the long-term health of our company," said Chairman and Chief Executive Frank Blake.

There was little cause for optimism about the housing market after a widely watched index showed Tuesday that home prices tumbled by the sharpest annual rate on record in the fourth quarter. The Standard & Poor's/Case-Shiller U.S. National Home Price Index was down 18.2% from a year ago — largest drop in its 21-year history.

At Home Depot, revenue for the period ended Feb. 1 slid 17% to $14.61 billion from $17.66 billion last year. Same-store sales sank 13% for the quarter. Same-store sales, or sales at stores open at least a year, are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.