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In “HD Earnings Preview” Monday morning I explained why I was tactically short. And it turns out that HD’s results were significantly worse than expected. Comps declined 4.5% and Net Income 8.5% compared to a year ago. Because “demand softened further relative to our expectations”, HD lowered full-year guidance as well. It is now expecting Comps of -2% to -5% and an EPS decline of -7% to -13%. HD shares are down almost 3% in the premarket.

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