HD is a solidly managed company that is harnessing the omni-channel model, which integrates physical stores with digital purchasing. I have used the omni-channel to buy specific small items that were not available in the store and have been very pleased with the process. It was easy to purchase, easy to pick up, and there were no extra charges for this convenience. YAH!!
HD's management is focused on improving the retail experience for consumers. In addition, HD has a history of rewarding its employees for their mutual success. The following is a quote from HD's most recent earnings call:
I want to close by thanking our associates for their hard work and dedication to our customers in the fourth quarter and throughout the year. For the second half of the year, 100% of our stores qualify for success sharing, our profit sharing program for our hourly associates. This is our largest second half payout to date. We look forward to continuing this momentum in 2015.I see HD as a company that takes care of its employees, so the employees will take care of the customers, so the customers will take care of the company, so the company will take care of its employees...
What to watch for: New and existing home sales data, according to analysts, and U.S. GDP, according to HD management. Increases in home sales theoretically generate increased activity at HD retail stores due to the need to modify, repair, and re-model homes. Watching these data points is not as important as keeping track of HD management's long-term execution, in my opinion. As long as they are executing and enhancing the retail experience for consumers, HD will do well.
Common Cents Take: HD is a great company that takes care of its employees and customers. The focus on these two aspects of running a business will allow HD to grow its earnings, assuming that HD is constantly improving on the two.
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