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Home Depot Slows Growth from Sales Decline

ATLANTA-The company predicts a total sales decline of up to 5%, and negative comps up to the high single digits for the year.

By Debra Hazel | Updated on February 26, 2008

ATLANTA – Reporting sharp 2007 declines and expecting the same in 2008, Home Depot is cutting its expansion, executives said at the company’s fourth quarter conference call. The company predicts a total sales decline of 4% to 5%, and negative comps in the mid to high single digits for the year, and plans only 55 new store openings, just 35 of them in the US, down from earlier expectations of more than a 100 total.

The company’s capital expenditures will be cut from $3.4 billion in 2007 to $2.3 billion this year. Plans for 2009 and 2010 will echo or could even be slightly down from 2008 expansion plans.

The company is engaging in a number of retrenching initiatives and “chief among the activities we are downsizing is new store growth,” said Frank Blake, chairman & CEO. Mexico and China continue to pose opportunities for growth, he said.

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