CEO Of the Home Depot, Inc. (NYSE:HD) Replaced By Retail President of the Company

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By Martin Foley on August 25, 2014 Consumer Staples

News has it that the current chief executive of The Home Depot, Inc. (NYSE:HD), Frank Blake, will be replaced by the company’s retail president, Craig Menear. Frank Blake will leave the position on November 1, 2014.

The retail president of the company was responsible for digital and media marketing, vendor management programs, handling the supply chain network and global sourcing. Craig also had numerous opportunities where he took the position of higher level management in the merchandise sector of the company. Recently, Craig had been given the position of vice president merchandise.

The current CEO of the company, during a meeting, said that Craig has held a number of important managerial positions in the company, and not once has he disappointed the company. He further said that Craig shares the values of the company, and the Home Depot is confident that he will take the company to a whole new level.

Frank Blake, the current CEO of the company, also holds the chairmanship of the board of directors. Frank will continue to hold the chairman position whereas Craig will be given a position in the board in the near future.

The stocks of the company declined a little when the news of Frank’s replacement hit the market. However, shortly afterwards, the stocks gained momentum again and came close to its 52 week high of $91.81.

The replacement of Frank with Craig was not unexpected news for the people who followed the company closely. Frank was expected to retire soon as he approached 65 whereas Craig was the one leading the most recent earnings conference of the company.

The current CEO is leaving the company during its high time. The company, during its most recent quarter, not only beat the estimates of Wall Street but it also improved its annual guidance outlook.

The company reported total revenues of $23.8 billion during its second quarter; an increase of 5.7 percent can be seen if compared with the figures of the same quarter a year back. Wall Street had expected the revenues to reach $23.5 billion.

Moreover, the sales of the same store sector increased by 6.4 percent whereas the customer deals rose by 4.2 percent.

Coming to the net income of the company, the company’s net income reached to $2.1 billion, with $1.52 earnings for each share.

The company not only reported remarkable results but it also beat its competitor, Lowe’s, during the second quarter of the year 2014.

Coming to the share prices of The Home Depot, Inc. (NYSE:HD), the company, on the last trading day, August 22, 2014, started its shares at a price of $90.74 and closed at an increased price of $91.03. The intraday range for the company’s stocks was recorded to be from $90.65 to $91.33. The company has a total market capitalization of $124.49 billion with a price to earnings ratio of 21.7. As far as the dividend yield of the company’s stocks is concerned, the numbers are recorded to be at 2.07 percent.