The Home Depot hosted its 2019 Investor and Analyst Conference and provided an update on key strategic priorities and gave a preliminary outlook for fiscal year 2020.
In fiscal 2018, the company began a three-year, accelerated investment program to position itself as One Home Depot. This One Home Depot strategy is creating an interconnected shopping experience by allowing customers to seamlessly blend the digital and physical worlds.
Investments to deliver on this strategy follow a customer-back approach, touching every aspect of the company’s business. These investments and capabilities— including store enhancements and new e-commerce solutions, delivery options and a comprehensive Pro ecosystem— will further unlock the interconnected retail vision the company began building several years ago.
“We are confident that the investments we are making in the One Home Depot experience will address the evolving needs of our customers. We are building on our distinct competitive advantages to capitalize on a large and fragmented market opportunity and extend our leadership position for years to come,” said Craig Menear, chairman, CEO and president, Home Depot.
The company also reaffirmed its guidance for fiscal 2019, a 52-week year compared to fiscal 2018, a 53-week year, as follows: Total sales growth of approximately 1.8% and comparable sales growth for the comparable 52-week period of approximately 3.5%; and diluted earnings-per-share growth of approximately 3.1% from fiscal 2018 to $10.03.
In addition, the home improvement retailer provided a preliminary fiscal 2020 outlook as follows: Total sales growth of approximately 3.5% to 4%; comparable sales growth of approximately 3.5% to 4%; operating margin of approximately 14%; and return on invested capital of approximately 45%.