Home Depot Posts Profit
March 1, 2010,
Coming off a solid fourth quarter, Home Depot sees 2010 as a transitional year, with a flat first half followed by a stronger second half.
However, with housing and employment still struggling, “we're still not out of the woods,” he said.
Despite slack sales, Home Depot swung to a profit during the fourth quarter and announced its first dividend increase in four years.
Earnings for the quarter ended Jan. 31 were $342 million, or 20 cents per share, compared to a net loss of $54 million, or 3 cents per share, in last year's fourth quarter. Results include $41 million from discontinued operations related to HD Supply.
Sales slipped 0.3% to $14.6 billion. Total comps rose 1.2%, but U.S. same-store sales fell 1.1%.
For the year, earnings per share rose 17.2% to $1.57. Sales fell 7.2% to $66.2 billion. Total comps declined 6.6%, with U.S. comps dropping 6.2%.
The company declared a 5% increase in its quarterly cash dividend to 23.625 cents. Home Depot last raised the dividend in the third quarter of 2006.