The Home Depot Inc

Sector: Home and home improvement Countries of operation: Canada, Mexico and the US (including Guam, Puerto Rico and the US Virgin Islands) Key product categories: Building materials, décor, home-improvement, facilities maintenance, lawn and garden, repair and operations products Annual Metrics [caption id="attachment_152239" align="aligncenter" width="700"] Fiscal year ends January 31 of the following calendar year
*Trailing 12 months ended May 1, 2022[/caption]   Summary Incorporated in 1978 and headquartered in Atlanta, Georgia, Home Depot operates a network of 2,316 stores across Canada, Mexico and the US, as well as online. The company offers a variety of home-improvement products, focused on household, tools and yard maintenance items, such as flooring materials, drills and lawnmowers. As well as in-house brands, Home Depot offers products by brand names including Ryobi and Samsung. The company also offers a variety of services, including installation and equipment rentals. Rental is available at over 1,400 of the company’s locations across Canada and the US, as of January 31, 2022. Company Analysis Coresight Research insight: The market leader in the US home-improvement sector, Home Depot performed very strongly during the pandemic and entrenched its top-line gains through 2021, as demand for home-furnishing and home-improvement products surged, house prices rose and interest rates plummeted to historic lows. The company continues to serve two primary customer groups, consumers—DIY (do-it-yourself) and DIFM (do-it-for-me)—and professionals. Home Depot aims to take advantage of the momentum gained from strategic investments to optimize its omnichannel shopping experience and drive growth and productivity. Home Depot’s revenue grew by over $40 billion from fiscal 2019 to 2021. Fiscal 2022’s first quarter saw a sales high for the company as strong demand for home-improvement goods continued despite a slower start to spring in many parts of the US. In May 2022, the company announced Home Depot Ventures, a venture capital fund created to identify, fund and partner with early-stage companies to accelerate emerging technologies that improve the customer experience and shape the future of home improvement. The company has also introduced several new SKUs to stores this year and is leaning into products that simplify home projects, saving its customers time and helping them take on more jobs. Home Depot are navigating a challenging and dynamic environment and we expect to see continued strong growth, particularly as consumers stick with their current low fixed-rate mortgages as interest rates rise, and remodel their homes instead of moving.

Tailwinds	Headwinds
Market leader and low-cost provider in home improvement products and services Thriving real estate activity in second-home markets Upsurge in homebuilding and home-improvement activities Strong supplier and transportation network Established team of associates	Focused on the North American market with no geographical diversification Downward trend in US housing market in terms of affordability, higher prices and reduced sales Global supply chain disruptions, inflation and a tight labor market Intense competition industry

Strategy In its annual 10-K report, dated March 23, 2022, Home Depot outlined the following key focus areas: 1. Invest in the business

• Provide the best customer experience in home improvement
• Extend low-cost provider position
• To be the most efficient investor of capital in home improvement

2. Focus on enhanced merchandising information technology tools

• Build an interconnected shopping experience that is tailored to customers’ shopping intent and location
• Provide the best value in the market
• Optimize product assortments

3. Build an interconnected shopping experience a) Digital

• Grow digital capabilities to provide frictionless interactions
• Improve search capabilities, site functionality, category presentation, product content, speed to checkout and fulfillment options

b) In-store

• Empower customers with additional self-help tools, including mobile app-enabled store navigation
• Offer online order storage areas at front entrances, and curbside pickup
• Re-design the front-end area, including reconfigured service desks, improved layouts in all checkout areas, and expanded and enhanced self-checkout options

4. Expand supply chains

• Invest in new fulfillment centers to offer same-day or next-day delivery for 90% of the US population for extended home improvement product offerings, including big and bulky products
• Open flatbed distribution centers to handle items such as lumber that are transported on flatbed trucks

Revenue Breakdown (FY21) Company Developments

Date	Development
May 5, 2022	Home Depot will restart its in-store workshops for kids in the US. The workshops take place on the first Saturday of each month, offering families an opportunity to complete DIY projects together.
May 3, 2022	Home Depot announces $150 million in venture capital funding to invest in companies that can help it provide a seamless, interconnected shopping experience, develop new and differentiated capabilities, and extend its low-cost provider position.
April 19, 2022	Home Depot names Matt Carey as EVP of Customer Experience and appoints Fahim Siddiqui as EVP and CIO of Home Depot.
March 8, 2022	Home Depot a series of livestreamed workshops designed to help professional contractors manage and grow their businesses.
February 24, 2022	Home Depot announced the appointment of Paula Santilli, CEO of PepsiCo Latin America and Caryn Seidman-Becker, Chair and CEO of CLEAR, to its Board of Directors, effective March 1, 2022.
February 1, 2022	Home Depot announces plans to hire more than 100,000 associates ahead of its busy spring season, as customers continue to invest in their homes.
January 27, 2022	Home Depot names Ted Decker as CEO, President and member of the company's Board of Directors, effective March 1, 2022.
January 11, 2022	Home Depot introduces new and enhanced credit options for Pro customers, including the Pro Xtra™ credit card and updates to its commercial account card.
January 5, 2022	Home Depot launches its Pro paint assortment at all US locations, continuing the rollout it started in the fourth quarter of 2021.
December 28, 2021	Home Depot expands its military discount benefit to all US military veterans, active service members and spouses.
November 11, 2021	Home Depot’s foundation surpasses $400 million in donations to support US military veterans since 2011, when it first announced a formal commitment to veteran causes.
October 22, 2021	Home Depot today announces John Deaton as Executive Vice President of Supply Chain and Product Development, effective November 1, 2021.
October 6, 2021	Home Depot teams up with Walmart GoLocal to enhance local delivery capabilities.
September 28, 2021	Home Depot commits $10 million to venture capital funds focused on diversity and innovation.
June 23, 2021	Home Depot launches online rental reservations and opens new rental locations.
June 22, 2021	Home Depot Foundation announces its investment of an additional $6.4 million to combat veteran homelessness and support veteran housing initiatives.
June 2, 2021	Home Depot’s foundation partners with non-profit Home Builders Institute and civic organization 100 Black Men Of America Inc. to provide skilled training opportunities for youth in underserved communities.
April 15, 2021	Home Depot announces the opening of three new distribution centers across Florida, spanning from West Palm Beach and Miami to Fort Myers. The facilities provide faster delivery options to customers in the South Florida region.
March 25, 2021	Home Depot announces a partnership with non-profit organization Habitat for Humanity International to empower communities to celebrate springtime.
February 2, 2021	Home Depot today announces the opening of a new distribution center in Dallas to fulfill online and store orders. The facility spans 1.5 million square feet.
February 1, 2021	Home Depot announces a partnership with insurance company Allstate to develop a new industry-leading extended protection plan that offers customers and expanded range of benefits and faster repair services.
December 23, 2020	Home Depot completes the acquisition of industrial distributor HD Supply Holdings, Inc., for a total enterprise value of approximately $8 billion.
December 2, 2020	Home Depot announces plans to open two new distribution centers in Perth Amboy, New Jersey.
October 2, 2020	Home Depot appoints Ted Decker as President and COO.
August 4, 2020	Home Depot announces plans to open three new distribution centers in Georgia over a period of 18 months to support increasing demand for flexible delivery and pickup options for Pro and DIY customers.
December 11, 2019	Home Depot hosts an investor and analyst conference, addressing topics including key strategic priorities and a preliminary outlook for fiscal 2020.
December 11, 2019	Home Depot promotes Digital DIY in a new advertising campaign to support its digital transformation strategy.
November 26, 2019	Home Depot partners with personal security device and accessory brand YI Technology for a Black Friday promotion featured in stores and on HomeDepot.com.

  Management Team

• Ted Decker—CEO and President
• Richard McPhail—CFO and Executive VP
• Fahim Siddiqui—Executive VP and CIO
• Ann-Marie Campbell—Executive VP, US Stores and International Operations
• John Deaton—Executive VP, Supply Chain and Product Development

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Source: Company reports/S&P Capital IQ