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While Home Depot has made some moves towards improving customer service, announcing greater staff training and its expansion into latest bathroom fixtures and rugs. Many analysts are too quick to judge these shifts in business tactics. HD's move into bathroom fixtures and rugs is aimed right at " Mrs. I want a better looking home." Its not men who have concern over bathrooms, except that toilet will flush properly and few mean really care about rugs that go in them.
But Mr. Nardelli's not Home Depot. Nardelli's assembled a small army of key management while quietly managing to combine new thinking with old. His tactic is not a new one but it's a task few would undertake if given that opportunity.
Axcess Business News believes market pundits and institutional investors are too quick to judge this company's future and added Home Depot's stock to its Stock Guide's "best picks column" last week of Dec 2002 with a "very positive" view towards stock. Axcess Business News is holding that view in an even stronger light in lieu of its share's recent downturn this Friday.
The company blamed weaker-than-expected sales of hardware and power tools over holidays for its latest troubles, as stock fell 14 percent to its lowest level in nearly five years on Friday, a day after it warned that fiscal 2002 earnings would fall short of earlier estimates and that sales at stores open at least a year could drop as much as 10 percent in fourth quarter.
Home Depot is not alone in lower retail sales for 4th quarter. The entire retail sector lagged through Christmas season with few exceptions, like JC Penny's (NYSE: JCP), which had also been one of companies Axcess Business News had selected for its "best picks column", ahead of Bear Stearns' recent applaud by nearly two months. Axcess Business News dropped coverage of JCP last week as Stearn's released its views as stated above, supporting "best picks column's" 18th week of advancing market picks successfully.
This reporter is for Home Depot, as is Axcess Business News. I expect market to rise in its favor in coming period as Nardelli's "fix-it team" quietly moves forward with its repairs.
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Alan writes a daily column for Axcess Business News called Market Axcess. And he'd really like it if you click on that link and tell his editor how much you like his work so he gets a raise! (just kidding) I would like it if you visited the site, http://www.theaxcess.net Help yourself to some common sense and read my column now!