Tough Day At The Depots

February 26, 2008 at 9:47 am  ·  Category: Stocks

Home Depot (HD) reported this morning that same store sales decreased 8.3% and net income 28% for its recently completed fiscal 4th quarter.  Their guidance for 2008 was for negative comps in the mid to high single digits and a decline in earnings of between 19%-24% (HD FY 4Q Earnings Release).

That is just brutal.  HD shares, however, are flat on the day.

Office Depot (ODP) reported a 7% decrease in comps at its North American retail division and a loss of $11 million when you exclude a $30 million tax benefit (ODP 4Q Earnings Release).

Again, just brutal.  ODP shares are off 8%.

Disclosure: Top Gun has no position in Office Depot (ODP) and is short Home Depot (HD).

Posted by Greg Feirman  ·  Trackback URL  ·  Link
 

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