US-based leading home improvement retailer, Home Depot, revealed that consolidated profit of the company plunged by nearly 50 per cent last year as it suffered amid the US housing slump, reports Retail Week.
According to the report, consolidated net earnings of the company plummeted from USD 4.4 billion to USD 2.3 billion in the year to February 1, 2009 and the sales in the quarter slid 12 per cent. The figure reflected a USD 1.1 billion charge including business rationalisation costs of USD 387 million and other expenses.
Frank Blake, chairman and chief executive, Home Depot, said that despite the difficult economic conditions, the company made important progress in key areas. “We improved customer service ratings as measured by customer surveys and third parties. We maintained sound inventory control. Further, we have launched an effective lower price campaign and made strategic business decisions.”
“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,” added Blake in the report.
Currently, the company operates around 2,274 Home Depot stores across the world.
— IndiaRetailing Bureau