Tough Day At The Depots
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).