The Home Depot announced it expects third-quarter earnings of about 28 cents per share, a 12 percent increase over last year's third quarter. But the company also downgraded its same-store sales estimates from between 5 and 7 percent to 4 percent.
The altered estimates result from deflation in the pricing of lumber and building materials, which is expected to harm sales profits in the third and fourth quarters. Hurricane activity in September 1999 was also a factor in last year's third quarter results. President and ceo Arthur M. Blank insists that, despite earnings for fiscal 2000 falling short of long-term objectives, the company's profitability remains firm.