Home Depot, the world’s largest DIY chain, posted a 30 per cent fall in quarterly profits, to $1 billion, hit by a slump in the US housing market.

The retailer said sales trends had improved in the last week as spring weather arrived and added it was making good on efforts to improve stores.

Meanwhile, Wal-Mart Stores, the world’s largest retailer, reported an 8.1 per cent rise in first-quarter profit, but gave warning that second-quarter earnings that could fall short of Wall Street targets as it cuts prices to clear out stockpiles of spring clothing.

Wal-Mart’s profits rose to $2.83 billion. Sales rose 8.3 per cent to $85.387 billion.

Last week, the group said April sales at US stores open at least a year fell 3.5 per cent - the biggest decline since it began reporting such figures in 1979.

Adding to the lacklustre outlook, Home Depot said it expected per-share earnings for this year to fall at the low end of a previously forecast range of 4 per cent to 9 per cent.

Sales rose less than 1 percent to $21.6 billion, shy of the analysts’ average estimate of $21.78 billion.

Retail store sales fell 4.3 per cent to $18.5 billion, while sales in the supply segment geared to professional contractors rose 46 per cent to $3.1 billion, boosted by acquisitions.

Home Depot said it was still reviewing options, including a possible sale, for the supply unit that provides building materials and other products to contractors.

At retail stores, which account for 86 percent of Home Depot’s total sales and 92 per cent of operating income, the average purchase fell 2.9 per cent to $59.01 as consumers took on fewer big projects such as kitchen remodels.

Sales at stores open at least a year fell 7.6 per cent.

Home Depot shares were down 28 cents to $38.73.

Shares in Wal-Mart were down 28 cents to $47.56.

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