The Home Depot, Inc. (HD) is the world’s largest home improvement retailer with retail stores all across North America. The Home Depot sells building materials and home improvement products, as well as lawn and garden supplies, and provides installation, home maintenance, and professional service programs.
The Home Depot reported Q3 earnings recently expressing disappointment over its online and brick-and-mortar businesses. The retailer cut its 2019 sales forecast for the second time this year.
It was reported that net income declined by $2.77 billion, or $2.53 per share in the third quarter from $2.87 billion, or $2.51 per share. Same-store sales at Home Depot increased by 3.6% in the third quarter ending November 3 much below expectations at 4.7%. The company expects it’s fiscal 2019 sales to rise by about 1.8%, compared to a prior forecast of a 2.3% increase.
Home Depot has been investing recently on its online business by offering “click and collect” service in which automated lockers are arranged in stores for customers who prefer to pick up their orders and not wait for them to be home delivered. The company has also been working on its supply network to shorten delivery times and develop a user-friendly website, under an initiative called “One Home Depot”. The above initiatives were aimed at increasing sales by up to 6% to $120 billion by 2020.
“We are largely on track with these investments and have seen positive results, but some of the benefits anticipated for fiscal 2019 will take longer to realize than our initial assumptions,” stated Chief Executive Officer Craig Menear.
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