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Home Depot rentals about opportunities for further growth

Evgeniy Purtov - 29.04.20

In recent years, Home Depot Inc. Experts are experiencing rapid growth in tool rental, provided by Home Depot rentals but executives say there is still space for further growth.

“We know that 90% of tool rental professionals, but a few years ago only one out of 10 professionals rented from us,” said Craig Menier, head of Home Depot rentals, -0.06%, said that according to the earnings, according to FactSet transcript. “Today, this number has increased to one in four, but there is still room for further growth as we continue to invest in our experience in leasing instruments.”

Home Depot rentals said it has “the largest number of tool rental centers in North America,” with about 1,100 stores.

rentals

1. Home Depot rentals brings together a number of companies that see rental income streams

In the apparel sector, Rent the Runway has become the most famous name in the rental game, and as a result, according to The Wall Street Journal, it reached $ 1 billion. Urban Outfitters Inc. URBN, + 6.47%, American Eagle Outfitters Inc. AEO, + 4.23% and other companies are also involved.

2. Home Depot rentals optimistic forecasts

The optimism of Home Depot rentals in this and other areas of business is shared by analysts. The home improvement retailer reported on incomes that exceeded expectations and on incomes that were roughly in line with expectations. US sales in the same store, however, did not reach a 3% increase compared to the FactSet estimate for a 4.2% increase.

“It’s clear that the comparable F1Q19 sales deficit is worrying, given the recent volatility in housing data and concerns about the length of the US business cycle,” wrote Raymond James analysts led by Budd Bugatch. “However, given the weather-related consequences for the whole country in F1Q19 (in particular, in February), we came to the conclusion that there was some temporary noise in the results that masked higher basic demand.”

During the conversation, Mener said that in February of that year, "was the second wettest in US history." Planalytics, a group that monitors the impact of weather on businesses, said that over the course of the month, temperatures became colder, and snow and rain became “noticeable” in the western and central parts of the country.

“The DIY / Home Center sector won thanks to a favorable March and April, resulting in a total increase in weather for the quarter of $ 791 million compared to the first quarter of 2018,” the Planalytics report said. Market experts and professionals estimates shares Home Depot rentals at $ 205.

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