Home Depot Finance Case

II. Background information Founded in 1978, Home Depot Inc. is the world's largest furniture dealer and the second largest retailer in the United States. Sales in fiscal 2000 were $ 45.7 billion, compared to $ 38.4 billion in fiscal 1999. As of January 2001, the company operates 1,134 retail stores in 47 states, six provinces in Canada, Puerto Rico, Chile and Argentina. The Home Depot store sells various building materials, upholstery items, and garden products.

Home Depot entered the Mexican market in 2002 and acquired Del Norte, a chain of home centers. In addition, Home Depot began construction of stores at Mexicali and Tijuana. In the same year, Home Depot Landscape Supply launched professional gardener and high grade plant in nursery retail chain. There were only a few stores in Metro at Atlanta and Dallas / Fort Worth. Home Depot has decided to close all Home Depot Landscape Supply stores by the end of 2007.

In 2006, Home Depot acquired Hughes Supply, the largest home furnishings retailer in the United States for $ 3.2 billion. Hughes Supply has been integrated into Home Depot Supply to provide better service to corporate customers. Home Depot Supply was renamed in January 2007 under the name HD Supply. Five months later, Home Depot sold HD Supply to three private equity firms Carlyle Group, Bain Capital and Clayton, Dubilier and Rice (each company agreed to acquire a third of the division).

Home Depot opened a branch office in Georgia in 1981 and opened it in Hollywood and Foot store. Fort Lauderdale. By 1984, Home Depot operated 19 stores, with sales exceeding $ 256 million. On October 31, 1984, Dallas Market Home Depot purchased Bowater Home Center from Bowater Inc. for $ 40 million. The expansion of Home Depot in the mid 1980s caused financial difficulties, revenues declined by 42% and debt increased to $ 200 million. The economic difficulties of Home Depot also resulted in a decline in stock prices. In order to suppress the problem of Home Depot, we opened ten stores in 1986 and sold 2.99 million shares at 17 dollars a share in order to help The Home Depot rebuild debt.