Home Depot Stock

The Home Depot, Inc. is the world’s largest home improvement retailer. The company offers its customers a wide assortment of building materials, home improvement products, lawn and garden products, décor products, and facilities maintenance, repair and operations products. The company also provides a number of services, including home improvement installation services and tool and equipment rental. The company operates stores located throughout the U.S. (including the Commonwealth of Puerto Rico and the territories of the U.S. Virgin Islands and Guam), Canada, and Mexico. The company maintains a network of distribution and fulfillment centers, as well as a number of e-commerce websites in the U.S., Canada and Mexico.

Products and Services

A typical The Home Depot store stocks approximately 30,000 to 40,000 items during the year, including both national brand name and proprietary products. The company’s online product offerings complement its stores by serving as an extended aisle, and it offers a significantly broader product assortment through its websites and mobile applications, including homedepot.com, its primary website; homedepot.ca and homedepot.com.mx, its websites in Canada and Mexico; hdsupply.com, its website for its MRO products and related services; blinds.com, its online site for custom window coverings; and thecompanystore.com, its online site featuring textiles and décor products.

The company offers a number of services for its customers, including installation services for its DIY and DIFM customers. The company also provides tool and equipment rentals at locations across the U.S. and Canada, providing value and convenience for both Pros and consumers. To improve the customer experience and continue to grow this differentiated service offering, the company is continuing to invest in more locations (including piloting rental locations in Mexico), more tools, and better technology.

Customers

The company serves two primary customer groups — consumers (including both DIY and DIFM customers) and professional customers — and have developed varying approaches to meet their diverse needs:

DIY Customers

These customers are typically homeowners who purchase products and complete their own projects and installations. The company’s associates assist these customers both in its stores and through online resources and other media designed to provide product and project knowledge. The company also offers a variety of clinics and workshops both to share this knowledge and to build an emotional connection with its DIY customers.

Professional Customers (or Pros)

The company has a number of initiatives designed to drive growth with its Pros, including a customized online experience, a dedicated sales force, an extensive delivery network, its Pro Xtra loyalty program, enhanced credit offerings, and inventory management programs. The company extended its reach in the MRO marketplace with its fiscal 2020 acquisition of HD Supply, a leading national distributor and provider of MRO products and related value-added services to multifamily, hospitality, healthcare, and government housing facilities, among others, and in fiscal 2021 it integrated its legacy Interline Brands business into HD Supply. The company’s MRO operations use a distribution center-based model that sells products primarily through a professional sales force and through e-commerce platforms and print catalogs. The company recognizes the great value its Pros provide to their clients, and it strives to make their jobs easier and help them grow their businesses.

DIFM Customers

Intersecting the company’s DIY customers and its Pros are its DIFM customers. These customers are typically homeowners who use Pros to complete their project or installation. The company offers installation services in a variety of categories, such as flooring, water heaters, bath, garage doors, cabinets, cabinet makeovers, countertops, sheds, furnaces and central air systems, and windows. DIFM customers can purchase these services in its stores, online, or in their homes through in-home consultations. In addition to serving its DIFM customer needs, the company focuses on the Pros who perform services for these customers helps it drive higher product sales.

Intellectual Property

The Home Depot trademark has significant value and is an important factor in the marketing of the company’s products, e-commerce, stores and business. The company has registered or applied for registration of trademarks, service marks, copyrights and internet domain names, both domestically and internationally, for use in its business, including the company’s proprietary brands such as HDX, Husky, Hampton Bay, Home Decorators Collection, Glacier Bay, Vigoro, Everbilt and Lifeproof.

Strategy

The company intends to provide the best customer experience in home improvement. The company intends to extend its position as the low-cost provider in home improvement. The company intends to be the most efficient investor of capital in home improvement.

Seasonality

The company’s business is subject to seasonal influences. Generally, its highest volume of sales occurs in the company’s second fiscal quarter (year ended January 2023), as it moves into the spring season in the regions in which it operates.

History

The Home Depot, Inc., a Delaware corporation, was founded in 1978. The company was incorporated in 1978.