The Home Depot Inc (HD: Quote) announced the closure of remaining seven big box stores in China as the company shifts its focus in that market to specialty stores and online offerings. As a result of store closings, the company will record an after-tax charge of about $160 million or $0.10 per share in the third quarter.
The company said that the closings will affect approximately 850 associates, who will receive severance packages and job placement assistance. The company specified that it will continue to employ about 170 associates in China, working in the sourcing offices in Shanghai and Shenzhen, and working on its new retail formats team and in the specialty stores.
Excluding the about $0.10 per diluted share charge associated with the store closings, the company still expects its fiscal 2012 earnings-per-share to be up about 19 percent to $2.95, which is in line with prior guidance.
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by RTT Staff Writer
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