The Home Depot appoints new EVPs for Pro and HR roles

ATLANTA – The Home Depot (NYSE:HD), a leading home improvement retailer with a market capitalization of $379 billion, has announced key executive leadership changes with Michael Rowe taking over as executive vice president (EVP) of Pro, and Stephanie Smith being promoted to EVP, set to replace Tim Hourigan as EVP of human resources after his retirement on June 6. According to InvestingPro analysis, the company maintains a strong GOOD financial health rating, positioning it well for this leadership transition.

Rowe, a 19-year veteran at The Home Depot, previously led The Home Depot Canada as president, where he drove significant growth, particularly in the Pro customer segment. His new role will focus on enhancing the company’s strategy to expand its Pro customer base, including the development of delivery capabilities, salesforce, technology and CRM tools, order management, and more. The company’s revenue reached $159.5 billion in the last twelve months, with a healthy gross profit margin of 33.4%.

Smith, who will assume her new role upon Hourigan’s retirement, has been with The Home Depot for 22 years and has a diverse background in store operations, merchandising operations, and supply chain management. As EVP of human resources, she will be responsible for cultivating the company culture and improving the experience for over 470,000 associates.

Ted Decker, chair, president, and CEO of The Home Depot, expressed confidence in the appointed executives, citing Rowe’s operational expertise and Smith’s operational experience and leadership as key assets that will contribute to the company’s ongoing success and culture.

Vinod Nalajala has been promoted to president of The Home Depot Canada, bringing 24 years of experience within the company to his new role.

The Home Depot operates 2,347 retail stores and over 780 branches, employing more than 470,000 associates. Its stock is listed on the New York Stock Exchange (NYSE:HD) and is a component of the Dow Jones industrial average and the S&P 500 index.

This leadership transition is based on a press release statement from The Home Depot.

In other recent news, Home Depot has reported its first positive comparable sales in over two years, a significant development for the home improvement retailer. Despite this achievement, the company’s guidance for 2025 fell below market expectations, predicting a modest 1% increase in comparable sales, which is lower than the consensus estimate of 1.7%. RBC Capital Markets responded by lowering its price target for Home Depot to $424, citing a strategic move to mitigate risk amidst high interest rates. Truist Securities also adjusted its price target to $437, maintaining a Buy rating while noting the potential for financial deleverage due to sub-3% comparable sales trends.

Meanwhile, Piper Sandler reduced its price target to $435, highlighting the challenges posed by government policies and mortgage rates but anticipating a rebound in remodeling activity. DA Davidson maintained a Buy rating with a $500 target, emphasizing the positive comparable sales as a sign of potential recovery in the sector. TD Cowen reiterated its Buy rating and a $470 target, expressing optimism about Home Depot’s fiscal year 2025 performance and the growing demand from professional customers.

These analyst perspectives reflect a cautious yet optimistic outlook on Home Depot’s future, with several firms acknowledging the company’s strategic initiatives and market position. Despite the conservative guidance, Home Depot’s recent performance and strategic focus suggest potential for growth, particularly in the context of evolving economic conditions and consumer trends.

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