Home Depot profit beats Street

NEW YORK (Reuters) - Home Depot Inc reported a slightly higher-than-expected quarterly profit on tighter cost controls, but sales missed Wall Street estimates as consumers curbed purchases in the grim U.S. economy.

The mixed results prompted the top home-improvement chain to boost its profit outlook and shave its sales forecast for the year.

The news came the day after rival Lowe's Cos posted weaker-than-expected quarterly results, but kept its forecast for same-store sales growth this year in hopes of benefiting once demand picks up.

Like many other retailers, Home Depot has tightly managed costs to offset tepid sales. It has benefited from a slower expansion strategy, recent measures to improve its supply chain and cost cuts that included workforce reductions in January.

Net income rose to $1.2 billion, or 72 cents a share, in the second quarter ended August 1 from $1.1 billion, or 66 cents a share, a year earlier.

Analysts on average were expecting 71 cents a share, according to Thomson Reuters I/B/E/S.

Sales rose 1.8 percent to $19.41 billion, missing the average estimate of $19.59 billion.

Home Depot's sales at stores open at least a year rose 1.7 percent globally. Same-stores sales rose 1 percent in the United States, the company's main market.

For the year, Home Depot sees earnings of $1.90 a share from continuing operations, up 2 cents from its prior outlook. However, it expects sales growth of about 2.6 percent, down from a prior view of 3.5 percent.

(Reporting by Dhanya Skariachan; Editing by Lisa Von Ahn)

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