(Corrects second paragraph to show Lowe's earnings met expectations)
Top home improvement chain Home Depot Inc
Home Depot and smaller rival Lowe's Cos Inc
Home Depot said net profit fell to $689 million, or 41 cents a share, in the third quarter ended on November 1 from $756 million, or 45 cents a share, a year earlier.
Analysts on average were expecting earnings of 36 cents per share, according to Thomson Reuters I/B/E/S.
Sales fell 8 percent to $16.4 billion.
Home Depot has been quicker to cut costs and constrict inventory levels than Lowe's, and in some cases has benefited as housing markets improved in regions where it has a heavy presence.
(Reporting by Dhanya Skariachan; Editing by Lisa Von Ahn)