Home Depot posts higher-than-expected profit

Home Depot Inc, the world's largest home improvement retailer, reported higher-than-expected quarterly profit on Tuesday as it held down costs and consumers took on spring projects.
Earnings declined to $1.2 bln, or 71 cents a share, in the second quarter ended on August 3, from $1.59 bln, or 81 cents a share, a year earlier.
Analysts expected 61 cents a share, according to Reuters Estimates.
Sales fell 5% to about $21 bln, but were better than the $20.58 bln analysts expected. Sales at stores open at least a year fell 7.9%.
Chief Executive Frank Blake cited "improved execution in our merchandising and operations initiatives" during the quarter.
The second quarter is typically one of the strongest for home improvement retailers as consumers spruce up their homes in warmer weather. On Monday, smaller rival Lowe's Cos posted higher-than-expected quarterly profit.
Still, the crumbling U.S. housing market has compounded troubles as higher food and gasoline prices pressure consumers. The second quarter marked the eighth straight quarterly profit decline for Home Depot.
As housing has weakened, the Atlanta-based company has boosted investment to upgrade stores and taken other steps to improve operations.
Last year, it sold its supply unit, which distributed building materials. This year, it scaled back its store growth and is redirecting funds to store maintenance and staffing.
Home Depot, which announced the closure of about 15 underperforming stores in May, is also moving to lower distribution costs by rolling out more rapid deployment centers.
Home Depot said it still expected per-share profit from continuing operations to fall about 24% this year, as sales decline about 5%.