HOME DEPOT Q118 RESULTS AND NEW DRAMATIC 5-YEAR SUPPLY CHAIN PLAN

HOME DEPOT SALES GREW 4.2% in Q1. This was lower than analysts’ expectations, primarily due to gardening supply sales dropping in March and April due to cool weather. However, the other departments for the retailer performed ahead of expectations and showed high growth over last year.

Online orders were 6.7% of Home Depot’s total sales last year and 45% of online orders were picked up in stores. In an effort to meet these customer delivery demands, bring down transportation costs and improve inventory management, the retailer announced a 5-year, $1.2 billion plan to add 170 distribution centers across the US for same day delivery and direct ship to customers. This will enable them to reach 90% of the US in one day or faster. Home Depot also plans to build 7 e-commerce centers and the use of a greater fleet of small vans and trucks to deliver to local professional customers and contractors.

Accelerated Analytics customers who utilize their Power Pack of POS reporting tools for Home Depot sales and inventory reporting continue to grow in excess of the retailer’s overall sales growth numbers. In Q1 2018, Accelerated Analytics customers grew 5.51% in sales over Q1 2017. Utilizing a strong set of exceptions and inventory reports help these vendors stay on top of Home Depot initiatives and drive overall and same-store growth consistently.