Home Depot Adds High-End Items for Big Spenders

by Christopher Freeburn | February 27, 2014 12:37 pm

Home Depot Adds High-End Items for Big Spenders

In a bid to cash in on growing consumer interest in upscale home renovations, Home Depot (HD[1]) is boosting the array of premium products it offers[2].

home depot sign 630 flickr 300x225 Home Depot Adds High End Items for Big Spenders[3]
Source: Flickr[4]

Home Depot says that the number of customer shopping bills over $900 rose 5.5% during the three months that ended on Feb. 2. In fact, premium product sales at Home Depot have grown for four consecutive quarters. By contrast, the number of sales under $50 rose just 2.5% over the past three months, the Wall Street Journal notes.

In order to lure customers looking for a more expensive home appearance, Home Depot plans to unveil premium patio furniture and barbecue equipment, among other high-end products.

Though U.S. home sales have continued to post strong numbers, Home Depot expects the market to cool a bit in 2014 with home prices rising at half the rate they rose last year.

For the full fiscal year, Home Depot expects same-store sales to climb by 4.6%. The retailer has trimmed its outlook for full-year revenue growth from prior estimates of a 5% gain, to a 4.8% increase due to the likelihood of a weaker U.S. dollar going forward.

Earlier this month, Home Depot said it┬áplanned to hire 80,000 seasonal workers this spring[5], typically the retailer’s strongest season.

HD stock climbed modestly in Thursday mid-day trading. Home Depot stock has gained about 20% over the past year.

More Home Depot News:

Endnotes:
  1. HD: http://studio-5.financialcontent.com/investplace/quote?Symbol=HD
  2. boosting the array of premium products it offers: http://online.wsj.com/news/articles/SB10001424052702303426304579404593788477118?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303426304579404593788477118.html
  3. [Image]: http://investorplace.com/wp-content/uploads/2011/06/home_depot_sign_630_flickr.jpg
  4. Flickr: http://www.flickr.com/photos/ryanrules/
  5. planned to hire 80,000 seasonal workers this spring: http://investorplace.com/2014/02/hd-stock-home-depot-hiring-home-depot-jobs/#.Uw900txhOf0
  6. Home Depot Stock Rises Higher Despite Guidance Warnings: http://investorplace.com/2014/02/home-depot-stock/
  7. Home Depot Opens First Fulfillment Center for Online Orders: http://investorplace.com/2014/02/hd-home-depot/
  8. HD Stock – Home Depot Buys Online Retailer Blinds.com: http://investorplace.com/2014/01/hd-stock-home-depot-buys-online-retailer-blinds-com/#.Uw91NdxhOf0

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