How “Shrink” Affected Home Depot
MarketFoolery
The Motley Fool
4.7 • 1.7K Ratings
🗓️ 19 November 2019
⏱️ 22 minutes
🧾️ Download transcript
Summary
The problem with Home Depot’s latest quarter? Shrink. Bill Barker explains the very real challenge retailers face with shrink. Plus, we discuss Kohl’s rough 3rd-quarter report and Roku’s plan to sell one million shares of stock. (Tangents include fictional companies, where the Midwest actually begins, and a preview of our upcoming “Apropos Of Nothing” episode.)
Transcript
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| 0:00.0 | This episode of Market Foolery is brought to you by TDM Meritrade. |
| 0:03.2 | You have an investing style. TDM Meritrade has a mobile app to match it. |
| 0:07.8 | Check out TDM Meritrade Mobile and Think or Swim Mobile |
| 0:11.9 | to find the one that's right for you. |
| 0:14.0 | Remember SIPC. |
| 0:16.0 | It's Tuesday, November 19th. |
| 0:19.0 | Welcome to Market Foolery. |
| 0:20.0 | I'm Chris Hill with me in studio. |
| 0:22.0 | The highly-cappinated Bill Barker. Thanks for being here. |
| 0:26.2 | Thanks for having me. |
| 0:27.2 | Roku needs some cash. |
| 0:28.9 | Kohl's needs a Christmas miracle and one of our listeners I think probably needs some new |
| 0:33.9 | footwear we will get to all of that but we're gonna start with Home Depot. |
| 0:37.4 | Third quarter for Home Depot this was literally the percentage beat by a penny, but revenue was lower than expected. |
| 0:47.0 | Same store sales was, I think, a full percentage point, lower than expected. |
| 0:52.0 | And you couple that with the fact that shares of Home Depot were at an all-time high, |
| 0:57.0 | not a huge surprise that the stock is down about 5% this morning. |
| 1:01.6 | Yeah, it seems like the message today was that the investments that they've been making into technology |
| 1:07.8 | and initiatives to improve efficiency are taking longer to produce the benefits than was previously promised, which was |
| 1:15.9 | to get about 100 basis points, 1% of improved profitability off of this investment. |
| 1:22.1 | So far they've realized about half of that. Still |
| 1:26.3 | think they're going to realize all of it over time, you know, through next year |
... |
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