Home Depot hit by housing slump

Home Depot is the world's biggest home improvement retailer

Shares in Home Depot fell 5.2% in New York after the DIY chain reported a 66% fall in three month profit, hit by the US housing slump.

Net earnings fell to $356m (£181m), which included a $543m charge for closing 15 stores and scrapping plans to open 50 new ones.

Home Depot also warned that full year profit could fall by as much as 24%.

Sales were hardest hit in areas such as Florida and California that have seen the biggest housing slowdowns.

"The housing and home improvement markets remained difficult in the first quarter; in fact, conditions worsened in many areas of the country," said Home Depot's chairman and chief executive Frank Blake.

But there was better news from outside the US, with sales rising at its stores in Canada, Mexico and China.