It's a tailwind for Home Depot that consumers are now taking on larger and more-involved home-improvement projects, something that was held off during the pandemic due to the health and safety concerns of letting outsiders into your home. Big-ticket transaction (those over $1,000) comps in Q2 increased 24%, driven by pro-heavy categories like lumber, vinyl plank flooring, and gypsum. Pros generate slightly less than half of Home Depot's revenue, but they are a stickier customer base that spends more than the do-it-yourselfer. Pros consist of small contractors who depend on Home Depot as a mission-critical partner to supply the right parts and tools in a timely manner. (Round your answer to one decimal place. Compute Home Depots debt ratio (assume competitors average a 60.0 debt ratio). Home Depot's professional customer is vital to the success of the organization, and for the past two quarters, this segment's sales growth outpaced the DIY cohort. In a recent years financial statements, Home Depot reported the following: Total liabilities 38,633 million and Total assets 42,966 million. comps, supporting the argument that Home Depot is doing just fine in the grand scheme of things.Īs you can see, long-term shareholders have a lot to be happy about. ![]() ![]() Lowe 's, its biggest competitor in the industry, actually posted a 2.2% year-over-year decrease in U.S. A business this size, with a market capitalization of $350 billion, can't grow in excess of 20% forever. Investors shouldn't be surprised at the meaningful deceleration for Home Depot.
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