Home improvement retailer, The Home Depot Inc. (HD) has named its existing Chief Executive Officer (CEO) and President, Craig Menear, the Chairman of the company, following the retirement of Frank Blake. Menear will take on the additional role from Feb 2, 2015.
Shares of Home Depot rose 3.1% on Friday, Jan 16, following the news.
Craig Menear assumed the role of the company’s CEO in Nov 2014, succeeding Blake. With his experience of 17 years and significant contributions toward Home Depot’s success, Menear has achieved momentous growth in the company, rising from the position of chief merchant. He is the first merchant to be named the Chairman and CEO, since co-founder Bernie Marcus.
Before his appointment as the CEO and President, this retail veteran supervised the company’s supply-chain networks, simultaneously serving as the chief merchant. Moreover, he managed the company’s private brand operations, marketing strategies, its fast growing online business and international sourcing.
On the other hand, Frank Blake’s contributions to the success of Home Depot are also noteworthy. During his service as the company’s CEO and chairman, Blake added a lot of value to the company. He was also commended by management for constructing a world-class leadership team.
Additionally, as per sources, Blake propelled the company forward during the U.S. housing crisis by focusing on augmenting sales at the existing locations and slowing the pace of new store additions.
Home Depot recently posted better-than-expected third-quarter fiscal 2014 results driven by strong performance across all geographies due to a rise in transactions and strength in its core store activities. The company’s adjusted earnings of $1.15 per share jumped nearly 21.1% from the year-ago quarter’s earnings of 95 cents and surpassed the Zacks Consensus Estimate of $1.13.
Net sales increased 5.4% to $20,516 million from $19,470 million in the year-ago quarter and beat the Zacks Consensus Estimate of $20,418 million. The company’s overall comparable-store sales (comps) increased 5.2% while comps in the U.S. stores grew 5.8%.
After concluding the third quarter, Home Depot reaffirmed its sales growth outlook of 4.8% for fiscal 2014. The company now expects diluted earnings per share growth of 21% for fiscal 2014 with earnings of $4.54 per share.
Home Depot currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same industry is Lowe's Companies Inc. (LOW) with a Zacks Rank #2 (Buy). Other stocks worth considering in the broader retail sector include Pacific Sunwear of California Inc. (PSUN) and Bebe Stores Inc. (BEBE), each carrying a Zacks Rank #1 (Strong Buy).
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