Home Depot holds the dominant position in the U.S. home improvement industry, accounting for approximately 60% of all revenues. With 1,977 stores across the U.S., Home Depot has been a one-stop shop for many consumers looking to buy home improvement goods. Although the U.S. economy remained upbeat in 2014 with GDP growing at 2.3% and unemployment hitting record lows at 6%, activity in the housing market remained relatively glum. For one, existing home sales, among the most important determinant for home improvement spending, declined by almost 3% in the full year after having increased by 9.2% in 2013. New home sales also recorded a modest 1.6% rise after having recorded a 16.6% increase the previous year. Furthermore, Home Depot also bore the brunt of a massive data breach, which compromised credit and debit card details of close to 56 million customers. Even in the face of this, revenues for the retailer continued to rise and the stock price increased by over 35% since the start of 2014, to record its biggest climb in half a decade.
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