Home Depot Adds High-End Items for Big Spenders

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

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 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 planned to hire 80,000 seasonal workers this spring[4], 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:

• Home Depot Stock Rises Higher Despite Guidance Warnings[5]
• Home Depot Opens First Fulfillment Center for Online Orders[6]
• HD Stock – Home Depot Buys Online Retailer Blinds.com[7]

Source URL: https://investorplace.com/2014/02/home-depot-adds-high-end-items-big-spenders/

---