logging in or signing up HomeDepotPresentation lawson Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINTLite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 2536 Category: Business & Fin.. License: All Rights Reserved Like it (2) Dislike it (0) Added: April 13, 2008 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... By: rohitmail1 (12 month(s) ago) helo mail me the copy of the presentation urgently Saving..... Post Reply Close Saving..... Edit Comment Close By: wantron (23 month(s) ago) Home Depot Overview World’s largest home improvement retailer Second largest retailer in the US in 2000 1103 Home Depot Stores 26 EXPO Design Center 4 Villager’s Hardware Test Store Lighting and plumbing subsidiaries Products Group Building Materials, Lumber and Millwork (24.7%) Plumbing, Electrical and Kitchen (26.6%) Hardware and Seasonal (28.5%) Paint, Flooring and Wall Coverings (20.2%) Saving..... Post Reply Close Saving..... Edit Comment Close By: wantron (23 month(s) ago) Home Depot Overview World’s largest home improvement retailer Second largest retailer in the US in 2000 1103 Home Depot Stores 26 EXPO Design Center 4 Villager’s Hardware Test Store Lighting and plumbing subsidiaries Products Group Building Materials, Lumber and Millwork (24.7%) Plumbing, Electrical and Kitchen (26.6%) Hardware and Seasonal (28.5%) Paint, Flooring and Wall Coverings (20.2%) Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Slide1: Mena Boyadzhiev, Alex Hirschhorn, Shen Li, and Haley ZernichIndustry Overview: Industry Overview U.S. Home Improvement Retail Industry Focuses on the sale of equipment and supplies for various forms of small and individual construction projects, especially home improvement. Overall market size in 2000 was about $200 billion. Customers : Do-It-Yourself (D-I-Y) Buy-It-Yourself (B-I-Y) Professional Costumers (Business to Business Sales)Home Depot Overview: Home Depot Overview World’s largest home improvement retailer Second largest retailer in the US in 2000 1103 Home Depot Stores 26 EXPO Design Center 4 Villager’s Hardware Test Store Lighting and plumbing subsidiaries Products Group Building Materials, Lumber and Millwork (24.7%) Plumbing, Electrical and Kitchen (26.6%) Hardware and Seasonal (28.5%) Paint, Flooring and Wall Coverings (20.2%) Home Depot Overview: Home Depot Overview Operating Strategy: Broad assortment of high-quality merchandise and services at competitive prices using highly service-oriented personnel and aggressive advertising. Year 2000 Income Statement: Net Sales: 38.4 billion Gross Profit: 11.4 billion Net Earnings: 2.3 billion Case Overview: Case Overview Nearly two decades of spectacular performance Reported a below expectations 3Q & 4Q performance in 2000 Stock price experienced its largest one-day drop Case Overview: Case Overview Is it a temporary slip or has Home Depot reached the limit of sustainability? Internal Financial Performance External Macroeconomic ConcernsFinancial Analysis: Financial Analysis Good cost control History of strong sales Strong market presence Projections of continued strong sales growth at a slower rate Financial Analysis: Financial AnalysisFinancial Analysis: Financial AnalysisFinancial Analysis: Financial AnalysisCompetition: Competition LOWE’S (No.2 in Market) Recent increase in market share and sales Differences: Layout Regional distribution Number of storesCompetition: Competition Other Competitors: MENARDS Mostly in Midwestern states- has 35% of home improvement market share in Milwaukee HOMEBASE Just in some western states Large stores, as big as Home DepotCompetition: Competition Staying Competitive: Villager Hardware EXPO Design Center Expanding into the professional market New product lines (i.e. appliances)Macroeconomic Factors: Macroeconomic Factors Interest Rates Consumer Confidence and Spending Home Improvement Market Real Estate MarketMacroeconomic Factors: Macroeconomic FactorsAnalyst Views: Analyst Views Raymond James: 12/29/99 “Home Depot was the best-managed retailer in the country, if not the world.” Stock is overvalued “conditioned the street to expect it to beat estimated numbers” Credit Suisse/ First Boston: 2/25/00 Drop is a result of “general concern over interest rates and the Feds intent to low consumer spending.” “Positive comments about all of the company’s growth initiatives” “Pro-Initiative” is most importantAnalyst Views: Analyst Views Morgan Stanley: 3/1/00 Positive on growth initiatives Predicts 18% increase stock price over next year CIBC World Markets: 4/12/00 Predicted 25% earnings growth rate, possibly higher Rising interest rates would not have same effects as in 1995 thanks to good strategy 12 month price target 30% higher than current price Analyst Views: Analyst Views Salomon Smith Barney: 8/23/00 “Expected a deceleration in the company’s earnings growth to about 25% a year…would occur primarily because of the macroeconomic environment-higher interest rates and a slowing economy” (emphasis added) Conclusion: Conclusion Home Depot has a solid foundation... Good Business Plan Customer Loyalty Good Market StrategyConclusion: Conclusion ...but it’s not immune to macro factors Repeat of ’94-95 recession drop Susceptible to interest rates, consumer confidence, real estate Expansion into new markets could provide insulationConclusion: Conclusion A good company but susceptible to macroeconomic turbulence You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
HomeDepotPresentation lawson Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINTLite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 2536 Category: Business & Fin.. License: All Rights Reserved Like it (2) Dislike it (0) Added: April 13, 2008 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... By: rohitmail1 (12 month(s) ago) helo mail me the copy of the presentation urgently Saving..... Post Reply Close Saving..... Edit Comment Close By: wantron (23 month(s) ago) Home Depot Overview World’s largest home improvement retailer Second largest retailer in the US in 2000 1103 Home Depot Stores 26 EXPO Design Center 4 Villager’s Hardware Test Store Lighting and plumbing subsidiaries Products Group Building Materials, Lumber and Millwork (24.7%) Plumbing, Electrical and Kitchen (26.6%) Hardware and Seasonal (28.5%) Paint, Flooring and Wall Coverings (20.2%) Saving..... Post Reply Close Saving..... Edit Comment Close By: wantron (23 month(s) ago) Home Depot Overview World’s largest home improvement retailer Second largest retailer in the US in 2000 1103 Home Depot Stores 26 EXPO Design Center 4 Villager’s Hardware Test Store Lighting and plumbing subsidiaries Products Group Building Materials, Lumber and Millwork (24.7%) Plumbing, Electrical and Kitchen (26.6%) Hardware and Seasonal (28.5%) Paint, Flooring and Wall Coverings (20.2%) Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Slide1: Mena Boyadzhiev, Alex Hirschhorn, Shen Li, and Haley ZernichIndustry Overview: Industry Overview U.S. Home Improvement Retail Industry Focuses on the sale of equipment and supplies for various forms of small and individual construction projects, especially home improvement. Overall market size in 2000 was about $200 billion. Customers : Do-It-Yourself (D-I-Y) Buy-It-Yourself (B-I-Y) Professional Costumers (Business to Business Sales)Home Depot Overview: Home Depot Overview World’s largest home improvement retailer Second largest retailer in the US in 2000 1103 Home Depot Stores 26 EXPO Design Center 4 Villager’s Hardware Test Store Lighting and plumbing subsidiaries Products Group Building Materials, Lumber and Millwork (24.7%) Plumbing, Electrical and Kitchen (26.6%) Hardware and Seasonal (28.5%) Paint, Flooring and Wall Coverings (20.2%) Home Depot Overview: Home Depot Overview Operating Strategy: Broad assortment of high-quality merchandise and services at competitive prices using highly service-oriented personnel and aggressive advertising. Year 2000 Income Statement: Net Sales: 38.4 billion Gross Profit: 11.4 billion Net Earnings: 2.3 billion Case Overview: Case Overview Nearly two decades of spectacular performance Reported a below expectations 3Q & 4Q performance in 2000 Stock price experienced its largest one-day drop Case Overview: Case Overview Is it a temporary slip or has Home Depot reached the limit of sustainability? Internal Financial Performance External Macroeconomic ConcernsFinancial Analysis: Financial Analysis Good cost control History of strong sales Strong market presence Projections of continued strong sales growth at a slower rate Financial Analysis: Financial AnalysisFinancial Analysis: Financial AnalysisFinancial Analysis: Financial AnalysisCompetition: Competition LOWE’S (No.2 in Market) Recent increase in market share and sales Differences: Layout Regional distribution Number of storesCompetition: Competition Other Competitors: MENARDS Mostly in Midwestern states- has 35% of home improvement market share in Milwaukee HOMEBASE Just in some western states Large stores, as big as Home DepotCompetition: Competition Staying Competitive: Villager Hardware EXPO Design Center Expanding into the professional market New product lines (i.e. appliances)Macroeconomic Factors: Macroeconomic Factors Interest Rates Consumer Confidence and Spending Home Improvement Market Real Estate MarketMacroeconomic Factors: Macroeconomic FactorsAnalyst Views: Analyst Views Raymond James: 12/29/99 “Home Depot was the best-managed retailer in the country, if not the world.” Stock is overvalued “conditioned the street to expect it to beat estimated numbers” Credit Suisse/ First Boston: 2/25/00 Drop is a result of “general concern over interest rates and the Feds intent to low consumer spending.” “Positive comments about all of the company’s growth initiatives” “Pro-Initiative” is most importantAnalyst Views: Analyst Views Morgan Stanley: 3/1/00 Positive on growth initiatives Predicts 18% increase stock price over next year CIBC World Markets: 4/12/00 Predicted 25% earnings growth rate, possibly higher Rising interest rates would not have same effects as in 1995 thanks to good strategy 12 month price target 30% higher than current price Analyst Views: Analyst Views Salomon Smith Barney: 8/23/00 “Expected a deceleration in the company’s earnings growth to about 25% a year…would occur primarily because of the macroeconomic environment-higher interest rates and a slowing economy” (emphasis added) Conclusion: Conclusion Home Depot has a solid foundation... Good Business Plan Customer Loyalty Good Market StrategyConclusion: Conclusion ...but it’s not immune to macro factors Repeat of ’94-95 recession drop Susceptible to interest rates, consumer confidence, real estate Expansion into new markets could provide insulationConclusion: Conclusion A good company but susceptible to macroeconomic turbulence