Home Depot is stepping up its game

February 22, 2021

Home Depot (HD)

Last quarter, Home Depot posted an earnings beat driven by shoppers revamping their homes. Shares fell ~2.5% after the company cemented pandemic pay raises and failed to provide guidance.

Heading into its Q4 report, investors are wondering: are consumers still working on their homes, and how is Home Depot performing vs. peers?

1. Home Renovation mentions remain elevated (+11% YoY), alongside other key macro trends in the last month.

home renovation mentions

While mentions did not hold the initial lockdown boom pace, the fact that consumers are still picking up home projects bodes well for the retailer.

Consumer macro trends like building a house (+42% YoY) and buying a home (+14% YoY) are also serving as tailwinds for the company.

2. Home Depot is outperforming competitor Lowe's by 10 points in the last month.

What is Home Depot doing right?

Digital fulfillment.

Digital fulfillment mentions (including curbside pickup, delivery, buy-online-pickup-in-store) increased +42% YoY in last quarter (this is 12 points higher than LOW digital mentions in same time frame, +30% YoY). Metrics for both companies represent a significant improvement QoQ, suggesting traction with consumers.

We'll be watching demand as weather conditions warm up and spring projects begin...

Want deeper insights? Get Free Access to The Vault.

Related Posts

Are consumers pumping the breaks on home renovation?

Lowe's (LOW) Home Depot is trading ~3% lower today after […]

Read More
Sonos Crushed 2020, but Can its Growth Continue?

Sonos Crushed 2020, but Can its Growth Continue? SONO shares […]

Read More
Wayfair (W) is Losing its Edge

Wayfair (W) is Losing its Edge Wayfair was a COVID […]

Read More
1 2 3 8

Related Posts

About LikeFolio

LikeFolio analyzes social media data to accurately predict shifts in consumer behavior. We sell data and insights to professional investors, corporate research teams, and software providers.
© 2024
 LikeFolio. All Rights Reserved.