Home Depot to Ease Growth, Spending

Home improvement retailer The Home Depot will trim its square-footage growth outlook, in a new plan aimed at upping cash flow.

Besides cutting 50 future stores from its "new store pipeline," Home Depot will close 15 underperforming stores this year.

Reiterating its intention to open 55 new stores for 2008, including 36 new stores in the United States, the 2,258-store retailer said it will still grow square footage by 1.5% per year starting in 2009.

The new strategy will cut about $1 billion out of capital spending over the next three years.

Home Depot noted that total capital spending for the current fiscal year is projected at $2.3 billion, down from $3.6 billion last year.

From this new plan and other measures, $77 billion Home Depot will recognize a charge of about $586 million in 2008 — and even before that charge, the company has projected a 19% to 24% drop in diluted earnings per share from continuing operations for fiscal 2008.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • 1200 Suppliers are Ready for You at Intertextile Shanghai

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.


HTT August 2017

See the August 2017 issue of Home & Textiles Today. In this issue, we look at the Top 50 Retailing Giants Report, plus Manufacturing: Made in the USA gaining ground; International: Portugal ramping up exports; New products: NY Now home textiles introductions; Outlook: Commentary from H&TT's editors; and Planning: Trade show calendar.

See details!