The Home Depot or simply Home Depot (NYSE: HD) is an American retailer of home improvement, construction products and services. The Home Depot operates 2,248 big-box format stores across the United States (including all 50 U.S. states, the District of Columbia, Puerto Rico, the Virgin Islands and Guam), Canada (all ten provinces), Mexico and China.[2] (12 store chain). The Home Depot is headquartered from the Atlanta Store Support Center in Atlanta, Georgia.[3]
In terms of overall revenue reported to the U.S. Securities and Exchange Commission, The Home Depot is the largest home improvement retailer in the United States, ahead of rival Lowe's, and the fourth largest general retailer.[4] The store operates out of large warehouse style buildings averaging 105,000 ft² (9,755 m²) with megastores operating in larger facilities (the company's largest store, located in Union, New Jersey is 225,000 ft²).
The Home Depot, Inc., incorporated in 1978, is a home improvement retailer. The Home Depot stores sell an assortment of building materials, home improvement and lawn and garden products and provide a number of services. The Home Depot stores average approximately 105,000 square feet of enclosed space, with approximately 24,000 additional square feet of outside garden area. As of January 31, 2010, it had 2,244 The Home Depot stores located throughout the United States, including the Commonwealth of Puerto Rico and the territories of the United States Virgin Islands and Guam (U.S.), Canada, China and Mexico.
The Home Depot stores serve three primary customer groups: do-it-yourself (D-I-Y) customers, do-it-for-me (D-I-F-M) customers and professional customers. D-I-Y customers are home owners who purchase products and complete their own projects and installations. D-I-F-M customers are home owners who purchase materials themselves and hire third parties to complete the project or installation, or both. The Company arranges for the installation of a range of The Home Depot products through independent contractors. Professional customers include professional remodelers, general contractors, repairmen, small business owners and tradesmen. In many stores, the Company offers a range of programs to these customers, including additional delivery and will-call services, staff, merchandise selections and expanded credit programs.
A Home Depot store stocks 30,000 to 40,000 products, including both national brand name and own items. During the fiscal year ended January 1, 2010 (fiscal 2009), plumbing, electrical and kitchen product groups, hardware and seasonal product groups, building materials, lumber and millwork product groups, and paint and flooring product groups accounted for 29.8%, 29.1%, 21.9% and 19.2%, respectively, of the Company’s net sales. To complement its product selection, The Home Depot, Inc. has formed alliances and relationships with selected suppliers to market products under a variety of brand names. During fiscal 2009, it offered a number of own brands across a range of departments, including, but not limited to, Behr Premium Plus paint, Hampton Bay lighting, Vigoro lawn care products, Husky hand tools, RIDGID and Ryobi power tools and Glacier Bay bath fixtures.
The Home Depot, Inc.’s stores offer a variety of installation services. These services target D-I-F-M customers who select and purchase products and installation of those products from the Company. These installation programs include products, such as carpeting, flooring, cabinets, countertops and water heaters. In addition, the Company provides professional installation of a number of products sold through its in-home sales programs, such as generators and furnace and central air systems.
The Company offers six credit programs through third-party credit providers to professional, D-I-Y and D-I-F-M customers. During fiscal 2009, approximately 2.8 million new The Home Depot credit accounts were opened, and the total number of The Home Depot active account holders was approximately 12 million. The credit card sales accounted for approximately 25% of store sales in fiscal 2009. As of January 31, 2010, the Company operated 30 lumber distribution centers, 36 conventional distribution centers and two transit facilities, all located in the United States, Canada and Mexico.
By 1989 Home Depot had surpassed Lowe's Companies in sales, becoming the largest home-repair chain in the United States. By year's end almost all outlets were using the company's new satellite data communications network. The fast and accurate exchange of information now linking stores permitted continued growth by enhancing the company's responsiveness to market changes. The satellite also served as a foundation for the Home Depot television network, a system that produces and transmits live programming by top management to each outlet. The company's net earnings increased 46 percent in 1990, and Home Depot effected a three-for-two stock split that same year. Sales increased 38 percent over 1989. With the trend for continued growth in the do-it-yourself market shown by a 33 percent increase in the number of customer transactions logged by the company in 1990, along with an increase of 4 percent for the average customer sale, Home Depot seemed to be an emerging giant in the U.S. retail marketplace.
The company began the 1990s with the goal of doing more than $10 billion in sales from 350 locations by 1995. Part of this plan included a 75-store expansion into the northeastern United States, one of Home Depot's strongest markets despite the region's economic setbacks. Company officials believed the area's dense population and large number of older homes would generate impressive results. Expansion plans also included the state of Washington.
Despite the continued health of the home remodeling market, the company's stock flattened out in 1993, as the firm began to saturate its market. Along with superstores like Bed Bath & Beyond, Home Depot suffered from consumer reaction to the proliferation of large warehouse megastores. In reaction, the company began to search for ways to redefine its marketplace, as well as developing enhancements to its three-tiered "price, assortment, and service" strategies.
Throughout the 1990s Home Depot tested out several programs designed to determine where business could grow next. In 1991 it sampled customer interest in an installation program for items like carpets, doors, and windows. The program met with success and was adopted throughout Home Depot stores. A bridal registry was tested, as well as a drive-in lumberyard and a delivery service. Home Depot also established an environmental marketing department to help educate consumers about what product choices are more environmentally friendly. Over 70 hardware products--from light bulbs to paint--were identified for customers via in-store flyers and posters. Customer satisfaction again came under consideration in a program called S.P.I--store productivity improvement--in which cleaning, restocking, and other routine tasks are scheduled after store hours. In 1995 Home Depot opened its first 24-hour store and published a book on home repair, the 480-page Home Improvement 1-2-3, compiled with Better Homes and Gardens magazine publisher Meredith Corporation.
In addition to entering new U.S. markets, Home Depot began to examine other options. In 1994 the company spent $150 million on a 75 percent share of Aikenhead's Home Improvement Warehouse, a Canadian hardware chain. While Home Depot examined the possibility of expansion both north and south of the border, by the following year plans to open outlets in Mexico had been put on hold, and the number of planned Canadian openings had been reduced to 25 through 1996. Instead, the company added to the number of its EXPO Design Centers, bringing the total to five. Begun in 1991 and located throughout the U.S., these stores have captured the upscale interior design market and further expanded the company's sales base. In addition, efforts to court the commercial market also began to reap profits; overall, Home Depot net earnings achieved a 5-year compound growth rate of 35 percent over the first half of the 1990s.
In addition to its dual concerns of maintaining both the bottom line and customer satisfaction, Home Depot has continued to take a leadership role in many of the communities that its stores have entered. Under the leadership of Blank, who contends that corporate America has a responsibility to give back to the society within which it flourishes, Home Depot's Team Depot has become involved in humanitarian causes ranging from local welfare organizations to Habitat for Humanity and the Boys and Girls Clubs of Canada and the United States. In addition to encouraging the continuous volunteer efforts of its employees, the company also employed 1996 Olympic hopeful athletes, paying them competitive wages as part-time employees during their training for the Atlanta-based games, of which Home Depot was a corporate sponsor.
Although some forecasters continued to shed doubt upon the company's ability to maintain its phenomenal level of growth through the year 2000, company management has remained confident. By 3rd-quarter 1996 Home Depot had reported earnings of $221--up 26 percent from the previous year--and was ranked among the ten largest retailers in the United States. Despite the losses posted to competitors in the do-it-yourself retail market, Home Depot's 9 percent increase in same-store sales in 1996 showed that, within the $90 billion consumer home improvement market, orange had become the color of choice.
OVERALL
Beta: 0.78
Market Cap (Mil.): $59,112.57
Shares Outstanding (Mil.): 1,598.07
Annual Dividend: 1.00
Yield (%): 2.70
FINANCIALS
HD Industry Sector
P/E (TTM): 18.37 15.16 18.33
EPS (TTM): 30.00 -- --
ROI: 11.03 6.08 1.56
ROE: 17.44 8.49 2.40
Statistics:
Public Company
Incorporated: 1978
Employees: 95,000
Sales: $15.47 billion
Stock Exchanges: New York
SICs: 5211 Lumber and Other Building Materials; 5251 Hardware Stores; 5231 Paint, Glass, and Wallpaper Stores
Name Age Since Current Position
Blake, Francis 62 2007 Chairman of the Board, Chief Executive Officer
Tome, Carol 54 2007 Chief Financial Officer, Executive Vice President - Corporate Services
Saldivar, Ricardo 58 2006 President, Mexico
Lennie, Bill 2011 President, The Home Depot Canada
Carey, Matthew 46 2010 Chief Information Officer, Executive Vice President
VanWoerkom, Jack 57 2007 Executive Vice President, General Counsel, Corporate Secretary
Crow, Timothy 55 2007 Executive Vice President - Human Resources
Ellison, Marvin 46 2008 Executive Vice President - U.S. Stores
Menear, Craig 53 2007 Executive Vice President - Merchandising
Hill, Bonnie 69 2008 Lead Independent Director
Brenneman, Gregory 49 2000 Independent Director
Batchelder, David 61 2007 Independent Director
Codina, Armando 64 2007 Independent Director
Ackerman, F. Duane 68 2007 Independent Director
Bousbib, Ari 50 2007 Independent Director
Katen, Karen 62 2007 Independent Director
Carey, Albert 59 2008 Independent Director
Address:
2727 Paces Ferry Road
Atlanta, Georgia 30339
U.S.A.
In terms of overall revenue reported to the U.S. Securities and Exchange Commission, The Home Depot is the largest home improvement retailer in the United States, ahead of rival Lowe's, and the fourth largest general retailer.[4] The store operates out of large warehouse style buildings averaging 105,000 ft² (9,755 m²) with megastores operating in larger facilities (the company's largest store, located in Union, New Jersey is 225,000 ft²).
The Home Depot, Inc., incorporated in 1978, is a home improvement retailer. The Home Depot stores sell an assortment of building materials, home improvement and lawn and garden products and provide a number of services. The Home Depot stores average approximately 105,000 square feet of enclosed space, with approximately 24,000 additional square feet of outside garden area. As of January 31, 2010, it had 2,244 The Home Depot stores located throughout the United States, including the Commonwealth of Puerto Rico and the territories of the United States Virgin Islands and Guam (U.S.), Canada, China and Mexico.
The Home Depot stores serve three primary customer groups: do-it-yourself (D-I-Y) customers, do-it-for-me (D-I-F-M) customers and professional customers. D-I-Y customers are home owners who purchase products and complete their own projects and installations. D-I-F-M customers are home owners who purchase materials themselves and hire third parties to complete the project or installation, or both. The Company arranges for the installation of a range of The Home Depot products through independent contractors. Professional customers include professional remodelers, general contractors, repairmen, small business owners and tradesmen. In many stores, the Company offers a range of programs to these customers, including additional delivery and will-call services, staff, merchandise selections and expanded credit programs.
A Home Depot store stocks 30,000 to 40,000 products, including both national brand name and own items. During the fiscal year ended January 1, 2010 (fiscal 2009), plumbing, electrical and kitchen product groups, hardware and seasonal product groups, building materials, lumber and millwork product groups, and paint and flooring product groups accounted for 29.8%, 29.1%, 21.9% and 19.2%, respectively, of the Company’s net sales. To complement its product selection, The Home Depot, Inc. has formed alliances and relationships with selected suppliers to market products under a variety of brand names. During fiscal 2009, it offered a number of own brands across a range of departments, including, but not limited to, Behr Premium Plus paint, Hampton Bay lighting, Vigoro lawn care products, Husky hand tools, RIDGID and Ryobi power tools and Glacier Bay bath fixtures.
The Home Depot, Inc.’s stores offer a variety of installation services. These services target D-I-F-M customers who select and purchase products and installation of those products from the Company. These installation programs include products, such as carpeting, flooring, cabinets, countertops and water heaters. In addition, the Company provides professional installation of a number of products sold through its in-home sales programs, such as generators and furnace and central air systems.
The Company offers six credit programs through third-party credit providers to professional, D-I-Y and D-I-F-M customers. During fiscal 2009, approximately 2.8 million new The Home Depot credit accounts were opened, and the total number of The Home Depot active account holders was approximately 12 million. The credit card sales accounted for approximately 25% of store sales in fiscal 2009. As of January 31, 2010, the Company operated 30 lumber distribution centers, 36 conventional distribution centers and two transit facilities, all located in the United States, Canada and Mexico.
By 1989 Home Depot had surpassed Lowe's Companies in sales, becoming the largest home-repair chain in the United States. By year's end almost all outlets were using the company's new satellite data communications network. The fast and accurate exchange of information now linking stores permitted continued growth by enhancing the company's responsiveness to market changes. The satellite also served as a foundation for the Home Depot television network, a system that produces and transmits live programming by top management to each outlet. The company's net earnings increased 46 percent in 1990, and Home Depot effected a three-for-two stock split that same year. Sales increased 38 percent over 1989. With the trend for continued growth in the do-it-yourself market shown by a 33 percent increase in the number of customer transactions logged by the company in 1990, along with an increase of 4 percent for the average customer sale, Home Depot seemed to be an emerging giant in the U.S. retail marketplace.
The company began the 1990s with the goal of doing more than $10 billion in sales from 350 locations by 1995. Part of this plan included a 75-store expansion into the northeastern United States, one of Home Depot's strongest markets despite the region's economic setbacks. Company officials believed the area's dense population and large number of older homes would generate impressive results. Expansion plans also included the state of Washington.
Despite the continued health of the home remodeling market, the company's stock flattened out in 1993, as the firm began to saturate its market. Along with superstores like Bed Bath & Beyond, Home Depot suffered from consumer reaction to the proliferation of large warehouse megastores. In reaction, the company began to search for ways to redefine its marketplace, as well as developing enhancements to its three-tiered "price, assortment, and service" strategies.
Throughout the 1990s Home Depot tested out several programs designed to determine where business could grow next. In 1991 it sampled customer interest in an installation program for items like carpets, doors, and windows. The program met with success and was adopted throughout Home Depot stores. A bridal registry was tested, as well as a drive-in lumberyard and a delivery service. Home Depot also established an environmental marketing department to help educate consumers about what product choices are more environmentally friendly. Over 70 hardware products--from light bulbs to paint--were identified for customers via in-store flyers and posters. Customer satisfaction again came under consideration in a program called S.P.I--store productivity improvement--in which cleaning, restocking, and other routine tasks are scheduled after store hours. In 1995 Home Depot opened its first 24-hour store and published a book on home repair, the 480-page Home Improvement 1-2-3, compiled with Better Homes and Gardens magazine publisher Meredith Corporation.
In addition to entering new U.S. markets, Home Depot began to examine other options. In 1994 the company spent $150 million on a 75 percent share of Aikenhead's Home Improvement Warehouse, a Canadian hardware chain. While Home Depot examined the possibility of expansion both north and south of the border, by the following year plans to open outlets in Mexico had been put on hold, and the number of planned Canadian openings had been reduced to 25 through 1996. Instead, the company added to the number of its EXPO Design Centers, bringing the total to five. Begun in 1991 and located throughout the U.S., these stores have captured the upscale interior design market and further expanded the company's sales base. In addition, efforts to court the commercial market also began to reap profits; overall, Home Depot net earnings achieved a 5-year compound growth rate of 35 percent over the first half of the 1990s.
In addition to its dual concerns of maintaining both the bottom line and customer satisfaction, Home Depot has continued to take a leadership role in many of the communities that its stores have entered. Under the leadership of Blank, who contends that corporate America has a responsibility to give back to the society within which it flourishes, Home Depot's Team Depot has become involved in humanitarian causes ranging from local welfare organizations to Habitat for Humanity and the Boys and Girls Clubs of Canada and the United States. In addition to encouraging the continuous volunteer efforts of its employees, the company also employed 1996 Olympic hopeful athletes, paying them competitive wages as part-time employees during their training for the Atlanta-based games, of which Home Depot was a corporate sponsor.
Although some forecasters continued to shed doubt upon the company's ability to maintain its phenomenal level of growth through the year 2000, company management has remained confident. By 3rd-quarter 1996 Home Depot had reported earnings of $221--up 26 percent from the previous year--and was ranked among the ten largest retailers in the United States. Despite the losses posted to competitors in the do-it-yourself retail market, Home Depot's 9 percent increase in same-store sales in 1996 showed that, within the $90 billion consumer home improvement market, orange had become the color of choice.
OVERALL
Beta: 0.78
Market Cap (Mil.): $59,112.57
Shares Outstanding (Mil.): 1,598.07
Annual Dividend: 1.00
Yield (%): 2.70
FINANCIALS
HD Industry Sector
P/E (TTM): 18.37 15.16 18.33
EPS (TTM): 30.00 -- --
ROI: 11.03 6.08 1.56
ROE: 17.44 8.49 2.40
Statistics:
Public Company
Incorporated: 1978
Employees: 95,000
Sales: $15.47 billion
Stock Exchanges: New York
SICs: 5211 Lumber and Other Building Materials; 5251 Hardware Stores; 5231 Paint, Glass, and Wallpaper Stores
Name Age Since Current Position
Blake, Francis 62 2007 Chairman of the Board, Chief Executive Officer
Tome, Carol 54 2007 Chief Financial Officer, Executive Vice President - Corporate Services
Saldivar, Ricardo 58 2006 President, Mexico
Lennie, Bill 2011 President, The Home Depot Canada
Carey, Matthew 46 2010 Chief Information Officer, Executive Vice President
VanWoerkom, Jack 57 2007 Executive Vice President, General Counsel, Corporate Secretary
Crow, Timothy 55 2007 Executive Vice President - Human Resources
Ellison, Marvin 46 2008 Executive Vice President - U.S. Stores
Menear, Craig 53 2007 Executive Vice President - Merchandising
Hill, Bonnie 69 2008 Lead Independent Director
Brenneman, Gregory 49 2000 Independent Director
Batchelder, David 61 2007 Independent Director
Codina, Armando 64 2007 Independent Director
Ackerman, F. Duane 68 2007 Independent Director
Bousbib, Ari 50 2007 Independent Director
Katen, Karen 62 2007 Independent Director
Carey, Albert 59 2008 Independent Director
Address:
2727 Paces Ferry Road
Atlanta, Georgia 30339
U.S.A.