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Home Depot in basement on real estate slump

Business Materials 18 November 2008 21:55 (UTC +04:00)

The crisis in the US real estate market is having an ever starker impact on Home Depot, the world's largest home improvement chain, dpa reported.

Profits fell more than 30 per cent in the third quarter to 756 million dollars, the Atlanta, Georgia-based company said Tuesday. Sales fell 6 per cent to 17.78 billion dollars.

The slump has forced the chain to begin closing outlets and to scale back its expansion plans as the outlook remains grim. Revenues were expected to fall 8 per cent for the year, with profits at existing stores dropping by a quarter.

Fifteen stores will close and another 50 that were planned will not be opened.

Competitor Lowe's said Monday that its profits had fallen by a quarter.

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