Is This the 1 Secret to Home Depot's Success?
The pandemic brought on a huge surge in sales for Home Depot (NYSE: HD), but that growth has slowed now as people take on fewer renovation projects than they did a couple of years ago. The retailer's revenue is forecast to fall between 2% and 5% for the current fiscal year, reflecting this new reality.
This soft outlook hasn't helped the top retail stock. It's down 2% this year -- far worse than the S&P 500's 14% gain. But the recent performance shouldn't distract investors from the one key factor that has contributed greatly to the company's long-term success: Its focus on professionals. Let's see why.
Home Depot sells home improvement products to both DIY and professional customers. The goal is to get the right tools, parts, and supplies in customers' hands to tackle whatever projects they need to complete. With a network of about 2,000 stores in the U.S. and trailing 12-month revenue of $155 billion, it is easily the top player in the industry.
Source Fool.com
