Home Depot

Topics: Dow Jones Industrial Average, Robert Nardelli, Revenue Pages: 2 (618 words) Published: April 16, 2013
The home depot has been around for many many years. It all started out a partnership and became a corportation that it currently is today. The Home Depot was founded in 1978 by two poor men. Their names were Bernie Marcus and Arthur Blank. They were accompanied by investment banker Ken Langone and merchandising guru Pat Farrah. They not only have stores throughout the United States but the Home Depot is a multinational corporation. They have broken into Canada, District of Columbia, Puerto Rico and Mexico. They are the United States’ largest retailer behind Wal-Mart. They are the largest home improvement retailer though. In 2000, the arrival of the new Chief Executive, Robert Nardelli, had changed the business strategy of the Home Depot to a more militaristic style. Under Nardelli's leadership, Home Depot is becoming more centralized and the good financial reports following this are signs that it a good strategy. Nardelli started making the company look and feel like an army. He loved to hire soldiers, because they were already trained with the discipline that he felt necessary to run a successful business. The Home Depot's stock is traded on the New York Stock Exchange and is included in the Dow Jones industrial average and Standard & Poor's 500 index. The Home Depot’s rival is Lowes. The Home Depot has benefits well from “Hurricane Preparation.” Since June, the Home Depot has outperformed Lowes by nearly 10% and most of the broader market by 6%. The Home Depot has about 500 more stores than Lowes and its expected sales growth are supposed to increase by a 4.6% over Lowes. The sales for the fiscal year 2000 were $45.7 billion, compared to $38.4 billion in fiscal 1999. As of January 2001, the company was operating 1,134 retail stores in forty-seven states, six Canadian provinces, Puerto Rico, Chile and Argentina. Revenue increased from $45.7 billion in 2000 to $81.5 billion in 2005, while profits rose from $2.6 billion to $5.8 billion. While this was a...
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