Last year was an annus horribilus for Home Depot. The nation’s largest home-improvement retailer was pummeled by a souring housing market, customer-service woes, a crisis of confidence in its industrial expansion strategy, and a spiraling scandal over former Chief Executive Robert Nardelli’s pay. The crisis culminated when Nardelli resigned early this year and, in February, the company reported its first decline in annual net income in its 29-year history. Despite a stagnant stock price and lower profits, however, Home Depot’s sales grew 11.9% in 2006, and average return on investment was 31.2%, better than archrival Lowe’s. Although Home Depot forecasts flat sales and another profit decline in 2007, new CEO Frank Blake has pledged to return the company to its retailing roots.
|Sales Growth Rate**|
|12-Month Net Income||
|Total Return||Past 12 Months|
|Past 36 Months
|Economic Sector||Consumer Discretionary|
|Industry||Home Improvement Retail|