Home Depot’s 2Q Profit Drops 24%
New York City The Home Depot Inc. reported a 24% drop in second-quarter profit on Tuesday.
The company said net income fell to $1.2 billion in the three months ended Aug. 3, from $1.59 billion a year earlier.
Sales fell 5.4% to $21 billion from $22.2 billion in the year-ago period. Same-store sales fell 7.9%.
“We continue to see pressure on our market and the consumer, generally,” Home Depot’s chairman and CEO Frank Blake said in a statement. Despite the weak economic climate, he noted that the company saw improved execution in its merchandising and operations initiatives during the past quarter.
To boost business, Home Depot has been trying to offer more locally relevant products in stores while focusing on the do-it-yourself customer and the small repair and remodeling professional.
About 70% of Home Depot’s sales come from homeowners, while the rest come from professionals such as contractors, according to the company.
Linens ‘N Things earns vendor support
CLIFTON, N.J. Linens ‘N Things announced that it has obtained the support of many key vendors for its Trade Vendor Payment Program, approved by the United States Bankruptcy Court for the District of Delaware last month.
Springs Global US, the Yankee Candle Company, Croscill Home Fashions, and M. Block & Sons, four major suppliers of merchandise to the company, have now agreed to participate in the Trade Credit Program, which provides letters of credit of up to $100 million. The company has agreed to limit participation in the Vendor Program to $100 million. To date, over 40 vendors have signed up for the Vendor Program.
“We are very appreciative of the widespread support shown by our vendors as we progress with our restructuring and head into the busy fall shopping season,” said Michael Gries, chief restructuring officer and interim ceo. “The Trade Vendor Payment Program is critical to maintaining positive relationships with the trade community, as we provide our customers with the wide assortment and depth of quality merchandise they expect from Linens ‘N Things.”
Jones promotes Friedman to ceo, company-owned footwear and apparel
NEW YORK Jones Apparel Group announced that Jay Friedman has been promoted to ceo of company-owned retail footwear and apparel. Friedman, who previously served as president of company-owned retail footwear and apparel, will continue to report to Andrew Cohen, ceo of footwear, accessories and retail.
Cohen said, “Under Jay’s leadership, the team has implemented a number of initiatives to improve the performance of the retail chain, including enhancing merchandise assortments throughout our stores and remodeling and refreshing our store environments to enhance the consumer’s overall shopping experience. I congratulate him on this well-deserved promotion.”