Home Depot Says Customers Remain “Resilient and Engaged”
publication date: Nov 16, 2022
Image: Home Depot's third-quarter performance wasn't bad. Inventories expanded, but management reiterated that its core customer remains resilient and engaged. Image Source: Home Depot.
Home Depot’s third-quarter report was solid, all things considered. The firm offset weaker transactions with a higher average ticket to driven solid comp performance. Management noted that its core customer remains resilient, and while inventories have ballooned on a year-over-year basis, we’re less concerned about the inventory build as most of Home Depot’s inventory is of the non-perishable variety. We like the firm as an idea in the simulated Dividend Growth Newsletter portfolio, though we continue to pay attention to the health of its balance sheet, which includes a considerable net debt position.
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