Uncomfortable Time For HDS
Following the health protocol post-COVID-19, HD Supply Holdings (HDS) will see some structural changes. While the hospitality sector will underperform, the facilities maintenance business in the home maintenance services will hold relatively well. However, higher personal health and hygiene protection items will result in lower average order size, which will contract its top-line and margin in the short term. Recently, the long-awaited business separation plan has been delayed due to the current headwinds in the economy.
I think the economic activities will start to recover after Q2 as many