Home Depot today forecast a deeper profit drop for 2007 after citing weakness in the US housing market.
The chain said it expected per-share profit for the full year to fall 15 per cent to 18 per cent to a range of $2.30 to $2.36 per share. In May, Home Depot had said earnings per share would fall 9 per cent this year.
The company earned $2.79 per share in fiscal 2006.
Home Depot's revised outlook reflects the recognition of its supply business, which provides building materials to contractors, as a discontinued operation. That unit is set to be sold later this year for $10.3 billion to private equity firms.
Home Depot said it expected 2007 total retail sales to decline by 1 per cent to 2 per cent and same-store sales to fall by mid-single digits. Previously, Home Depot had forecast full-year sales growth of 0 per cent to 2 per cent.
Stripping out a contribution by the HD Supply business, the company's earlier forecast had estimated a 15 per cent decline in full-year profit to $2.36 per share.