flexiblefullpage
interstitial1
Currently Reading

The Home Depot Bets on Pros Amid Predictions of Flat Sales Growth

Advertisement
billboard
Business

The Home Depot Bets on Pros Amid Predictions of Flat Sales Growth

For the first time since 2019, The Home Depot’s revenue fell short of Wall Street’s predictions amid a general softening in the home improvement market


By Erika Mosse February 24, 2023
Home Depot
Photo: Sundry Photography | stock.adobe.com

For the first time since 2019, The Home Depot’s revenue fell short of Wall Street’s predictions amid a general softening in the home improvement market.

On Tuesday, The Home Depot posted fourth-quarter earnings that beat expectations, but the big box giant still missed on revenue. Officials also projected roughly flat sales growth in 2023. 

"We expect this to be a year of moderation in demand for home improvement," said CEO Ted Decker during the fourth-quarter 2022 earnings call on February 21.

The company has benefited from strong sales growth due to inflation and Covid-fueled spending on remodeling. But many of today’s consumers are spending more on travel and/or conserving resources to combat the toll inflation is taking on their personal finances, said company officials.

Also notable, The Home Depot’s recently increased its investment in employees. A tight labor market spurred the company to earmark $1 billion in wage increases for hourly workers which brought the average starting salary to $15 an hour, beginning in early February.

Betting on the Pro Market

Pros represent about 10% of Home Depot customers, but account for approximately half of all its business. Pro sales growth outpaced DIY during Q4, but officials cautioned that this is likely due to contractors still working through their backlogs, and that picture could change. 

“The highlight remains the high pro spend,” Decker said on the call. “I mean that is still the strongest piece of the business.”

Over the past few years, the big box giant has invested heavily in pro customers, and recently expanded its Pro Xtra loyalty program adding new benefits and membership tiers.

 


written by

Erika Mosse

Director of Content

Erika Mosse is the director of content for Professional Remodeler. Contact her at emosse@sgcmail.com or 972.369.9212.


Add new comment

Plain text

  • No HTML tags allowed.
  • Web page addresses and email addresses turn into links automatically.
  • Lines and paragraphs break automatically.
leaderboard2

Related Stories

Managing Business Risk to Embrace Risk

As remodelers, our product is risk. Yet within our businesses, we fear risk. Just like with your projects, if you plan accordingly, your risk comes with reward

What the Most Successful Remodelers are Doing Right Now

Industry advisor Mark Richardson shares the answers to his three most asked questions: What's the remodeling market like? What are other remodelers doing? How do I measure up?

Becoming an Employee-Owned Design-Build Company

One remodeler’s cancer diagnosis changed the way he approached succession planning

10 Remodeling Sales Techniques for 2024

Mark Richardson explains the benefits of visual selling, strategic questioning, intentional messaging, and more on this episode of Remodeling Mastery

3 Ways to Start and Operate a Successful Handyman Division

So, you want to start a small projects division? Three successful remodelers lay out their winning approaches and hard-learned lessons

6 Tips for Software Adoption in a Remodeling Company

A design-build owner shares how he successfully implemented new softwares into his processes

6 Results-Proven Marketing and Sales Tips for Contractors

The Pinnacle Experience’s keynote speaker, author of "They Ask, You Answer" offers results-driven tips contractors can start today for improved leads

Forty Under 40 Remodeling Trendsetters

The new ideas embraced by our Forty Under 40 winners are examples of forward-thinking leadership in remodeling

 

How to Create a World-Class Remodeling Team

Great remodeling companies position themselves for the future with the right players

How to Increase Your Odds of Closing Remodeling Sales

Use these tips to hone your sales process and grow close ratio

Advertisement
boombox2
Advertisement
halfpage2
Advertisement
native1

More in Category




Advertisement
native2
Advertisement
halfpage1
Advertisement
leaderboard1