After Home Depot (HD) posted its fiscal 2019 first-quarter results, its management reiterated its guidance for fiscal 2019. Management expects HD’s revenue to rise 3.3% this year, with its same-store sales expected to increase 5.0% on a 52-week basis.
Analysts’ revenue expectations
Analysts expect Home Depot to post revenue of $111.4 billion in 2019, which represents a rise of 3.0% from $108.2 billion in 2018. Its positive SSSG and net addition of new stores are likely to drive its revenue in 2019.
Home Depot is focusing on enhancing the interconnected shopping experience, improving its delivery and fulfillment options, and expanding its product offerings to drive SSSG (same-store sales growth).
In June 2018, Home Depot announced that it would invest $1.2 billion over the next five years in strengthening its supply chain and improving its efficiency. During the period, the company will be building 170 distribution facilities, which will allow it to deliver products within a single day to 90% of the US population.
With the sales of professional customers continuing to outperform DIY customer sales, the company is investing in various initiatives to create a value proposition for its professional customers. By the end of the first quarter, the company had 135,000 customers on its new B2B (business-to-business) website. The company is targeting an increase in its B2B website customer base to 1 million by the end of this year. The company is also working on expanding its rental business by investing in more space, more tools, and better technology to attract more professional customers.
It’s also expanding its online offerings in the home decor, auto, pool, and workwear categories, which will extend to its in-store assortments. The company has introduced the DEWALT Atomic 20-Volt Compact series, which is exclusive to Home Depot, in the current quarter. All these initiatives are expected to drive its SSSG in fiscal 2019.