Bloombergreports that sales plunged nearly 10% at Home Depot in the first quarter. The home category is struggling because less homes are being bought and sold and less people are upgrading their homes.
Home Depot Inc., the world's largest home-improvement retailer, reported a 9.7 percent drop in first-quarter sales and said consumers remained reluctant to spend as the U.S. housing slump deepened.
Sales fell to $16.2 billion in the three months ended May 3, the Atlanta-based chain said today in a statement. Net income rose 44 percent to $514 million, or 30 cents a share, from a year earlier after the company trimmed selling, general and administrative costs.
Home Depot has taken some action to cut costs in the recession which helped it turn a profit. They closed their EXPO centers earlier this year and froze base salaries for officers.
Bloomberg 
