X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

To receive instant live coverage of the ICSC Convention this week, check out Ian Ritter’s Twitter.

ATLANTA-The Home Depot Inc., the locally based home improvement retailing giant, posted a 44% increase in profits through its first fiscal quarter ending earlier this month. However, company executives are worried that foreclosures in the detached housing sector could impact future results.

“We are concerned about accelerating rates of foreclosures, particularly in the western part of the country where there is already a high density,” Frank Blake, Home Depot chairman and CEO, stated during a conference call Tuesday. He noted that sales for the first quarter ending May 3 totaled $16.2 billion, declining 10% from the year-earlier period.

Home Depot is proceeding with the closing of its 48 EXPO Design Centers announced earlier this year. The company opened only five new Home Depot stores during the first quarter, along with a regional distribution center in Valdosta, GA.

First-quarter net income amounted to $514 million, up from $356 million a year ago and slightly ahead of analysts’ projections. The quarterly results include $117 million in costs related to the EXPO closings.

Home Depot’s biggest retail rival, Hendersonville, NC-based Lowe’s Companies Inc., on Monday posted a 22% decline in first-quarter earnings of $476 million while sales fell 1.5% over the year to $11.8 billion, with same-store sales down 6.6%. Lowe’s also plans fewer store openings this year.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.