The Home Depot Inc., the nation's largest home improvement retailer, reported a 24% drop in second-quarter profit but beat Wall Street expectations. The company reiterated its downbeat outlook for the year amid a weak housing and home improvement market that shows no signs of recovery.

The Atlanta-based company said Tuesday that net income was $1.2 billion, or 71 cents per share, in the three month period ended Aug. 3. That compares with $1.59 billion, or 81 cents per share, in the year-ago period.

Sales fell 5.4% to $21 billion from $22.2 billion in the year-ago period. Same-store sales, or sales at stores opened at least a year, fell 7.9%. Same-store sales are considered a key indicator of a retailer's health.

A survey of analysts by Thomson Reuters projected earnings per share of 61 cents on revenue of $20.58 billion.

"We continue to see pressure on our market and the consumer, generally," said Frank Blake, chairman and CEO, in a statement. Despite the weak economic climate, he noted that the company saw improved execution in its merchandising and operations initiatives during the past quarter.

Home Depot's business has been hurt by the sluggish economy and the housing slowdown, that's also battering its competitors such as Lowe's Cos. Inc.

Lowe's (LOW) reported Monday that its second-quarter profit fell nearly 8%, but managed to top Wall Street expectations as the nation's second biggest home improvement retailer benefited from customers' efforts to repair last year's drought-stricken gardens, tight expense controls and better-than-expected sales.

Lowe's offered a weaker-than-expected outlook for the third quarter, but raised its guidance for the full year.

To boost business, Home Depot (HD) has been trying to offer more locally relevant products in stores while focusing on the do-it-yourself customer and the small repair and remodeling professional. About 70% of Home Depot's sales come from homeowners, while the other 30% come from professionals such as contractors, according to the company.

Amid so much economic uncertainty, Home Depot said Tuesday that it expects earnings per share from continued operations to decline by 24%. Home Depot had said in May that it felt "more comfortable" that it would meet the low end of its full-year guidance for a 19% to 24% earnings-per-share drop, but did not elaborate. The guidance excludes one-time items.

Home Depot also projects that full-year sales should decline by 5%.