Home Depot Updates: Prepares For the Busy Spring Season

The world’s largest home improvement retailer Home Depot (NYSE:HD) is warming up for the upcoming spring season, the busiest selling season for home improvement retailers with strong demand for outdoor products, maintenance and repair. To give a head start to tapping upcoming market demand, Home Depot will be hire more than 70,000 temporary employees starting February. Last quarter, Home Depot continued to out-perform its largest competitor Lowe’s (NYSE:LOW) despite the still weak housing market with robust business in its core maintenance and repair segments. Its big-ticket ($900+) sales also grew at a decent 3.6%.

See our full analysis for Home Depot.

During the spring, home improvement retailers cater to increased demand of outdoor products like lawn care products, outdoor power, fertilizers and gardening products, grills and patio furniture. Home Depot is building up inventory and employee resources hoping to benefit from a good spring business compared to last year. Last season, Home Depot had a difficult Q1 business in its northern division (largest division with 40% of Home Depot’s markets) because of late spring season with a colder and wetter April that negatively affected its sales.

We have a $40 Trefis price estimate for Home Depot, at 10% discount to the current market price.

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