With fiscal second-quarter sales growth of 23.4%, it’s safe to say Home Depot (NYSE:HD) has performed quite well during the coronavirus pandemic. As an essential business, the home improvement behemoth was able to keep its doors open to serve the needs of millions of shoppers.
Its stock price has risen 30% so far this year, driven by impressive results from the do-it-yourself (DIY) segment. But for Home Depot to position itself for long-term success, its Pro business is the key.
From fiscal 2009 through fiscal 2019, Home Depot’s sales increased at a compound annual rate of 5.2%. The company has largely left its store growth unchanged with less than 50 net additions in that 10-year period, but management introduced initiatives like the One Home Depot strategy to boost efficiency within its existing store network. The company has reported positive comparable-sales growth for 10 years running.
Then, the coronavirus