Home Depot Expands Supply Chain: Will it Boost Efficiency?
The Home Depot, Inc. HD is strengthening its supply-chain and fulfillment capabilities as it looks to make product delivery faster and more convenient for customers. The company’s investments are increasingly connecting stores, distribution assets and technology, supporting a more efficient interconnected shopping experience.
In the second quarter of fiscal 2026, more than 65% of in-stock parcel deliveries were completed the same day or the next day. Home Depot also launched nationwide Express Delivery, allowing customers to receive tens of thousands of products within three hours. Management noted that the majority of these express orders are currently being delivered in less than one hour.
The company is also improving fulfillment for big and bulky merchandise. Over the past 18 months, delivery lead times for these products have declined roughly 45% in the United States. About 55% of stocked big-and-bulky deliveries are now reaching customers within two days, with faster delivery contributing to improved conversion.
Appliances represent another area of supply-chain expansion. Home Depot has adjusted its model to address rising demand for urgent replacement purchases, stocking select appliances for next-day delivery. This capability now covers key SKUs for nearly 60% of the population, and management said that markets offering the service are generating positive sales performance.
These initiatives suggest that Home Depot is using its broader fulfillment network to reduce delivery times, improve product availability and remove friction. Continued optimization across stores, supply-chain assets and technology could further improve operating efficiency while supporting stronger customer engagement.
How Are Peers Like LOW & FND Managing Supply Chain?
Peers like Lowe’s Companies Inc. LOW and Floor & Decor Holdings, Inc. FND are also sharpening their supply-chain strategies to improve product availability, accelerate fulfillment and better manage costs across their operations.
Lowe’s is expanding its fulfillment and supply-chain capabilities to improve speed, availability and store productivity. The retailer offers next-day delivery and installation on major appliances in virtually every U.S. ZIP code, while same-day fulfillment continues to gain traction. Lowe’s is also rolling out Freight Flow 3.0 and Full Shelf Replenishment to improve in-stocks, inventory accuracy and truck-to-shelf flow, supporting labor productivity, customer service and a more efficient omnichannel network overall.
Floor & Decor is advancing supply-chain efficiency through tighter inventory management and operational discipline. In the first half of 2026, total inventory inched up 0.7% to $1.1 billion, reflecting progress on working-capital and inventory-productivity initiatives. Management also noted that trucking capacity remains adequate despite higher domestic freight rates. These efforts could help FND improve product flow, contain costs and support scalable growth as it expands stores and omnichannel capabilities.
HD’s Price Performance, Valuation & Estimates
Shares of Home Depot have lost 23.5% in the past year versus the industry’s decline of 29.4%.
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From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 20.55X compared with the industry’s average of 18.71X.
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The Zacks Consensus Estimate for HD’s fiscal 2026 and fiscal 2027 earnings per share (EPS) implies year-over-year growth of 2.1% and 6.9%, respectively. The company’s EPS estimate for fiscal 2026 has been unchanged in the past 30 days. Meanwhile, the consensus estimate for fiscal 2027 EPS has moved down by a penny in the past seven days.
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Home Depot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
