Hardware Industry

Analysis of the Hardware Industry:

1. In your own words, please give a brief description of Home Depot’s core business.

Home Depot operates 2,234 stores throughout the U.S., Canada, China, and Mexico. Each of these locations sells a wide variety of home improvement products, building materials, lawn and garden products as well as a number of services to customers. In addition, Home Depot also manages thirty-four EXPO Design Center stores, two THD Design Center stores, and five Yardbirds stores. Since 2007, Home Depot has focused on their retail stores, investing in their associates and stores, improving customer service, and paying dividends to shareholders.

2. In your own words, please provide a brief description about Home Depot’s major customer groups:

There are 3 major customer groups that Home Depot serves. The first group, “Do-It-Yourself Customers,” use products from Home Depot to complete projects at their own homes.  They actually perform the projects themselves.  The second group is referred to as “Do-It-For-Me Customers.”  These customers use Home Depot products for their own homes, but hire others to complete the projects rather than doing it themselves.  The last group is “Professional Customers.”  These are the people who actually work in professions that use the type of products that Home Depot sells. These customers will typically buy Home Depot products more than the other two types of customers because construction and jobs of the like are their primary line of income. For this reason, Home Depot offers them some special services, such as delivery and extended credit programs.

3. Use the financial statements (10-K) to give a financial picture of Home Depot (put everything in millions):

Net

Fiscal Yr Total Total Gross Net Income

End Assets Revenues Margin Income % of Revenues

1/31/10 40,877 66,176 33.87 % 2,661 4.021 %

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