SFIX - Do Home Depot's Strategies Place It Well Amid Soft Demand? | Benzinga
The Home Depot Inc. (NYSE: HD) looks well-poised for long-term growth on its ongoing investments to strengthen its business despite the recent softness in demand trends across the home improvement industry. Home Depot is witnessing significant benefits from the execution of its strategic initiatives and commitment to investing in the business to deliver the best interconnected shopping experience, capture wallet-share with the Pro, and expand its store footprint.
The company is on track with the execution of the "One Home Depot" investment plan, which focuses on expanding supply-chain facilities, technology investments and enhancement to the digital experience. The interconnected retail strategy and underlying technology infrastructure have helped consistently boost web traffic for the past few quarters.
Home Depot's Pro segment has been a key growth driver, with the Pro segment witnessing robust sales growth for the past several quarters. In first-quarter fiscal 2024, the company's Pro and DIY sales were almost in line with one another. Although lower than the year-ago quarter, the company noted that Pro backlogs continued to be healthy and elevated relative to historic trends.
Recent external data point suggests that the types of projects in these backlogs are changing from large-scale remodels to smaller projects. HD continues to invest in Pro capabilities like enhanced fulfillment, more personalized online experience, and other business management tools to drive deeper engagement with Pro customers.
By the end of fiscal ...