Owing to the emergence of the Covid-19 pandemic, the homes gained greater importance due to remote works and online classes. When companies and schools were forced to close, homes became everyone's offices, classrooms, and primary amusement sources. Consequently, the home improvement industry had a good year in 2020, as people spent a lot of money improving their residences.
Home Depot has become one of the biggest winners of the latest living structure. As per TradingPlatforms.com's statistics, in 2020, Home Depot's net sales rose by $20 billion, or 19.85 percent year over year. The total revenue for the whole year generates up to $132 billion in contrast to $110 billion the year before.
Amid mounting lockdowns, physical distancing, and restrictions on the number of customers allowed into the store at one time, Home Depot managed to increase consumer sales by nearly 9% over the previous year. Economic crashes, including downturns and financial crises, have earlier caused a shrink in the home improvement industry. Nevertheless, throughout the pandemic, the home improvement industry emerged as one of the few bright spots in the US market.
The company's annual operating cash flow rose by 15% year over year to $18.28 billion in 2020. It has led to Home Depot's international active income is at a Compound Annual Growth Rate (CAGR) of 9.2% in its five-year plan from 2015 to 2020.
As shown in a study of 1000 American homeowners conducted by Hippo.com, 54 percent intend to make at least one home renovation in the last year. With 21 percent, 20.1 percent, and 18.4 percent, respectively, the majority of respondents said they had improved their backyard, kitchen, and office room. The percentage of people who spent more than $10,000 on house repairs was 10%, which was twice what the pre-COVID-19 figures showed. Surprisingly, 71% said they expect to maintain a similar level of home improvements hereafter, but this figure is likely to decline significantly.
At worldwide net revenue of over $14 billion, Home Depot's Indoor Garden category accounted for most of its sales revenue. It resulted in 10.8% of Home Depot's total sales in 2020, i.e., a 30 percent improvement over the previous year's Indoor Garden net sales figures. Only Home Depot's Lumber segment saw a more fantastic year-over-year boost, with a 43.3 percent increase in 2020. Plod prices have risen by over 170 percent in the year before, making it difficult for wholesalers and contractors to obtain sufficient material for new construction and upgrades. Becoming the second-largest proportion of world net revenue in 2020, Appliances accounted for producing an approximate $11.9 billion.
According to the National Association of Home Builders remodeling industry index, renovators are optimistic that all of this improvement will proceed in 2021. The survey participants scored 86 in the first quarter and increased in 38 points from the Past year's first quarter.
Home Depot, Inc., having many founders, is the nation's leading home improvement retailer, offering equipment, building materials, and services. It lists under NewYork Stock Exchange with a market cap of $344.92 billion. Beyond the United States, it serves in many other countries, including Canada and Mexico. The shares of Home Depot went public for the first time on September 22, 1981.