Home Depot's Headache: HD Supply

Lower profits at the retailer's wholesale business -- and tightening credit markets -- could scuttle its sale to private equity firms

For Home Depot (HD), tt wasn't the lower profits that made investors unhappy. As expected, the leading home improvement retailer reported on Aug. 14 that second-quarter earnings declined from the year-earlier period. But investors may have been even more concerned about the possibility that the company won't be able to sell its supply business.

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