For the fourth quarter, analysts expect Home Depot (HD) to post revenue of $26.57 billion, which represents a rise of 11.3% from $23.88 billion in the fourth quarter of 2017. The revenue growth is likely to be driven by the adoption of a revenue recognition standard, one extra week of operations, positive SSSG (same-store sales growth), and the addition of new stores.
For 2018, Home Depot’s management expects its revenue to rise by 7.2% on SSSG (same-store sales growth) of 5.5%. This revenue guidance accounts for one extra week of operations in 2018 compared to 2017.
By the end of the third quarter of 2018, Home Depot operated 2,286 stores compared to 2,284 stores at the end of the fourth quarter of 2017. The addition of these two new stores is expected to drive the company’s revenue in the fourth quarter.
To drive its sales, Home Depot is focusing on improving its delivery and fulfillment options, enhancing the customer experience through an interconnected shopping experience, improving customer satisfaction, and expanding its product offerings.
In June, the company’s management announced that it would invest $1.2 billion in strengthening its supply chain and improving its delivery speed over the next five years. During the period, Home Depot plans to add 170 distribution facilities to deliver products to 90% of the US population within one day.
As part of this initiative, on September 26, the company launched its express delivery service, which will deliver more than 20,000 of its products on the same day or the following day in 35 major markets in the United States. To offer the new delivery service for smaller products, Home Depot has partnered with Roadie and Deliv. For the delivery of bulk products, the company is expanding its supply chain network.
By the end of the third quarter of fiscal 2018, the company had implemented wayfinding signs in ~700 of its stores with the goal of improving customer convenience. During the third quarter, the company also expanded its assortments via the introduction of Stanley hand tools and Troy-built outdoor power equipment.