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Unformatted text preview: earnings per share fell about 4.7%, to $0.64 from $0.67. The outlook wont improve in the fall and winter, typically slow seasons for the home improvement business. Most analysts dont see a sector turn around until 2009 at the earliest; some believe the home improvement market will remain slack until 2010. Both retailers launched new promotions, but backed away. The move is almost certain to reduce sales in the short-term, but the cost of the promotions made the sales of little long-term value to the retailers. Home Depot had cut carpet instillation for an entire house to $99 from $199. It also waived interest payments for as much as a year on purchases of at least $299 on its proprietary credit card. Neither promotion goosed sales. Lowes boosted the price of its whole-house carpet instillation by $50 to $249 after the promotion cut into profits in the first and second quarters....
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This note was uploaded on 02/25/2012 for the course FINANCE 410 taught by Professor Conway during the Spring '12 term at Regis University.
- Spring '12
- Corporate Finance