Home Depot CEO Frank Blake said the current economy has "absolutely" given him more breathing room to turn around the world's largest home improvement company.

At an editorial board meeting with The Atlanta Journal-Constitution on Monday, Blake said expectations for Home Depot stock "are down a bit," given the struggling economy, the housing market crash and the tight credit market — a trifecta that has hit Home Depot hard.

Atlanta-based Home Depot's sales have been hammered, and one of Blake's core goals is an internal remodeling that will improve retail sales through customer service, better inventory and a leaner staff at headquarters.

Blake has been at the helm of Home Depot since January 2007. In the past 17 months, the stock price has taken a beating — it closed Friday at $27.45, down from $39.32 on Jan. 2, 2007, his first day at the helm.

"If I were writing the story," he said, "the market would start to pick up right about now."

He added, however, that it is counterintuitive to reinvest savings from layoffs and other changes back into the company during a downturn, but Home Depot's board has signed on to the plan.

"It is an advantage there are lower expectations, and people understand the need to change," Blake said.