Home Depot Finance Case Essay

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II. Background Information The Home Depot Inc. was founded in 1978 and is the world’s largest home improvement retailer and the second largest retailer in the United States. The sales for the fiscal year 2000 were $45.7 billion, compared to $38.4 billion in fiscal 1999. As of January 2001, the company was operating 1,134 retail stores in forty-seven states, six Canadian provinces, Puerto Rico, Chile and Argentina. Home Depot stores sell a wide assortment of building materials, home improvement and garden products. Twenty-six EXPO Design Center stores sell products and services primarily for design and renovation projects. Additionally, the company operates four Villager’s Hardware test stores, which offer products for home enhancement…show more content…
The basic EXPO Design center is approximately 90,000 square feet. Newly acquired companies, Georgia Lighting Inc. and Apex Supply Company Inc., are each operated by Home Depot Inc. as a wholly owned subsidiary. Georgia Lighting, a leading specialty lighting designer, distributor and retailer, has six retail locations. Apex Supply Company is a wholesale supplier of plumbing, HVAC and other related professional products, with twenty-one locations in Georgia, Tennessee and South Carolina. The co-founder of Home Depot Inc. retired as co-chairman on May 30, 2001. Arthur Blank, 58 years old, ran Home Depot since its inception in 1978 and was chief executive from May 1997 to December 2000. He will not seek re-election to the board. Co-founder Bernie Marcus, 71, the company’s other co-chairman, is expected to continue as chairman. Blank decided to retire sooner than he had planned, primarily because of what he called the successful transition of leadership to CEO Robert Nardelli, a former General Electric Co. executive and the first outsider at Home Depot’s helm. Nardelli, 52, replaced Blank as CEO on December 5, 2000. When Blank was CEO, sales more than doubled to $45.7 billion last year from fiscal 1996, and the stock price almost quadrupled, helping to make Home Depot sixth on the Fortune magazine’s list of most Admired Companies in America. The magazine also ranked Home Depot as

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