Home Depot Announces Menear as CEO, Blake to Remain Chairman - Analyst Blog

By Zacks Equity Research,

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Home improvement retailer, The Home Depot, Inc. ( HD ) 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 leadership team.

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 successor.

On the other hand, Menear has also been an asset to the company as his contributions towards driving Home Depot's success has been significant.

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. ( LOW ) recently posted better-than-expected second-quarter fiscal 2014 results.

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 $23,570 million.

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. ( CTRN ) and The Men's Wearhouse, Inc. ( MW ), each carrying a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: CEO , HD , LOW , CTRN , MW

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