Home improvement retailer,
The Home Depot, Inc.
) announced Craig Menear as the company's new Chief Executive
Officer (CEO) and president. Currently working as president, U.S.
retail, Menear's new role will take effect from Nov 1, 2014. Also,
he has been appointed as a new board of director, with this role
taking immediate effect.
However, the market did not react much to this news as shares have
dipped marginally since the announcement.
Further, Home Depot's current CEO and chairman, Frank Blake will
continue in his position as the chairman once Menear takes over as
CEO. Blake has added a lot of value to the company as CEO and
Chairman, the roles he has been assuming for seven years now. He
was also commended by management for constructing a world-class
Additionally, as per sources he propelled the company forward in
times of the U.S. housing crisis by focusing on augmenting sales at
the existing locations and slowing the pace of new store additions.
With his customer-oriented approach, he will take care of Home
Depot's planning for 2015 and then hand over his position to his
On the other hand, Menear has also been an asset to the company as
his contributions towards driving Home Depot's success has been
This retail veteran supervised the company's supply-chain networks,
simultaneous to serving as chief merchant. Moreover, he managed the
company's private brand operations, marketing strategies, its fast
growing online business and international sourcing.
Management is looking forward to Menear as CEO. With his leadership
potential, understanding of the company's values and his excellence
in all the roles undertaken so far, he is likely to take the
company to new heights in the coming years.
Home Depot, which competes with Lowe's Companies Inc. (
) recently posted better-than-expected second-quarter fiscal 2014
Driven by the recovery in its spring season sales as well as
strength in its core store activities and in all geographies, the
company's adjusted earnings of $1.52 per share jumped nearly 22.6%
year on year and surpassed the Zacks Consensus Estimate of $1.44.
Net sales increased 5.7% to $23,811 million from $22,522 million in
the year-ago quarter and beat the Zacks Consensus Estimate of
The company also raised its diluted earnings per share growth
guidance for the fiscal to 20.2% from the earlier anticipated
growth of 17.6%. Therefore, Home Depot now expects fiscal 2014
earnings to come in at $4.52 per share instead of the previous
forecast of $4.42.
Home Depot currently carries a Zacks Rank #3 (Hold). Other
better-ranked retail stocks include Citi Trends, Inc. (
) and The Men's Wearhouse, Inc. (
), each carrying a Zacks Rank #1 (Strong Buy).
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