Home Depot, Georgia’s biggest company by revenue, expects to cross the $100 billion annual sales mark by 2018.
The Atlanta-based home improvement chain, in a guidance message to investors Tuesday, said it anticipates strong spending on housing and an expanding online business will push sales to $101 billion in the next three years.
In the shorter run, Home Depot said it expects to end 2015 with a sales increase of about 5.7 percent and a 14 percent gain in earnings per share, to $5.36.
Home Depot has been on financial roll since the end of the Great Recession, with its stock price almost quadrupling over the past five years. Shares closed near $134 on Tuesday.
Helping Home Depot in most recent quarters has been demand for renovations such as updated kitches and new flooring in existing homes, a growing number of which are 30 years or older and ripe for rehab, the company said.
It also expects a payoff from its acquisition earlier this year of Interline Brands, which gives Home Depot access to maintenance repair work at hospitals, apartment buildings and hotels.
The company has weathered a high-profile security breach, disclosed in September 2014, that affected an estimated 56 million “unique” payment cards in U.S. and Canadian stores. It has spent $252 million on related expenses, $100 million of which will be paid by insurance.
About the Author
