This is an excerpt from Thursday’s (5/20) Point of Sale retail supply chain newsletter sponsored by ArcBest.
Americans continue to spend at elevated levels in and for the home. And now that people are becoming more comfortable with others in their homes, the renovation projects that were sidelined during the pandemic are coming back in a major way. Home Depot posted another great quarter this week, as it sees continued strength from DIYers and the best quarterly growth rate for its Pro customers on record.
The numbers:
- Total comp. sales +31% yoy
- Digital sales +27% yoy
- EPS $3.86 vs. $3.08 consensus
The takeaways.
Frenetic demand for home improvement unabating. According to Bank of America’s consumer spending data, Americans have been spending between 40% and 60% on home improvement vs. 2019 through the first five months of the year. This comes after a stretch of many months during which spending ran up triple digits year-over-year. When we look back at what happened during the pandemic, we will see changes that were accelerated by COVID, and we’ll see fleeting developments that were induced by COVID, but we’ll also see longer-lasting structural changes to behavior, including home improvement, in part due to migration from cities but mostly from remote work. Whether in a hybrid model or fully remote, working from home is sticky and Home Depot loves it.
Home Depot One Supply Chain taking shape. In 2017, Home Depot announced a…
