All's Not Well at Home

The Home Depot Inc. (Atlanta) has reported a 20.8 percent profit increase for its third quarter today, though it acknowledged that sales were slipping at its older stores.

Overall sales increased 9 percent, mostly because 34 new stores have been opened in the last 12 months. But same-store sales fell 2 percent. Some analysts have wondered out loud whether the company had grown so much that new stores were just chipping away at its other, older store. However, cfo Carol Tome said the retailer was far from exhausting the market and that it plans to open 58 more stores by the end of the year.

“Is it saturation?” she asked. “No, we don't see that at all.”

Another concern analysts voiced was that Home Depot's year-long effort to spruce up the stores and add appliance sections had not gone smoothly. Remodeling in many stores has depressed customer turnout, and company officials concede that the work has been disruptive and confusing for people trying to shop.