Why Home Depot made an $18.25 billion bet on the pro business

  • 📰 CNBC
  • ⏱ Reading Time:
  • 58 sec. here
  • 7 min. at publisher
  • 📊 Quality Score:
  • News: 43%
  • Publisher: 72%

Lowe's Companies Inc Berita

Home Depot Inc,Retail Industry,Business

The retailer's acquisition is boosting the business as home improvement demand remains slow.

The retailer announced it was acquiring SRS Distribution, a company that sells supplies to roofing, pool and landscaping professionals, for $18.25 billion in March and closed the deal in June.

In both of the past two quarters, Home Depot's revenue would have fallen year over year if SRS' sales were excluded. SRS came with a steep price tag, but could add rocket fuel to Home Depot's pro growth, said Joe Feldman, a senior research analyst for Telsey Advisory Group. He compared the deal to Walmart's, an e-commerce player. Some industry-watchers and Walmart's own CEO have credited the move for accelerating Walmart's online business, even though it eventually

"Their biggest challenge – and really, their only challenge – is when do we see a great retail vertical over the past few years get back to being that way?" said Chuck Grom, a senior analyst who covers retail for Gordon Haskett. For example, about 80% of the roofing business comes from repairs or re-roofing projects rather than for new homes, Decker said. He cited that as one of the factors that made SRS attractive.

SRS also sells a larger catalog of products that professionals use to satisfy customers' varied demands, such as a surf blue-colored roofing or a deeper selection of outdoor fire pits, Tinker said.

Berita ini telah kami rangkum agar Anda dapat membacanya dengan cepat. Jika Anda tertarik dengan beritanya, Anda dapat membaca teks lengkapnya di sini. Baca lebih lajut:

 /  🏆 12. in İD
 

Terima kasih atas komentar Anda. Komentar Anda akan dipublikasikan setelah ditinjau.

Indonesia Berita Terbaru, Indonesia Berita utama

Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.

This Tuscany-Inspired Seaside SoCal Mansion Just Hit the Market for $18 MillionCreated over several years by an L.A.-based interventional cardiologist, the Tuscany-style home boasts hand-selected marble and ocean vistas.
Sumber: RobbReport - 🏆 309. / 63 Baca lebih lajut »