Home Depot Net Worth: Improving Value Since 1973

As the largest home improvement retailer, Home Depot has stayed ahead of the game and curated market-leading business strategies in the industry.

As of November 2024, Home Depot’s net worth is $425.80 billion, making it the third-largest retail company in the world by market capitalization.

Our team of experts at Business2Community has prepared this detailed guide to extract the essence of Home Depot’s net worth growth trajectory so you can learn how the company achieved its success today and where it will grow in the future.

What is Home Depot’s Net Worth?

As of November 2024, Home Depot has a net worth, also known as a market cap, of $425.8 billion, based on a stock price of $408.18 and 993 million shares outstanding.

Home Depot held its initial public offering in September 1981, just three years after it was founded. It launched on the NASDAQ under the ticker symbol HOMD (later changed to HD) at $12 per share.

As a home improvement retailer, Home Depot enjoyed a fast-paced growth period in the 1990s due to the US housing boom. Its net worth increased more than sevenfold, from $20.38 billion at the beginning of 1996 to $158.31 billion in December 1999. Unfortunately, the rise of interest rates and a decline in consumer spending power in 2000 caused Home Depot’s net worth to drop by $32 billion within a year.

The burst of the housing bubble in 2008 was a great challenge for the retail giant. Its market value dipped from $80.26 billion in January 2007 to $36.50 billion two years later in January 2009.

Although the Great Recession demolished the housing industry, Home Depot was doing considerably better than its competitors due to its forward-thinking strategies. When the housing market started showing signs of vulnerability, the Georgia-based retailer began pausing its expansion plans and instead focused on rapid deployment centers to reduce warehouse needs and create a more cost-efficient production flow.

Therefore, despite a drop in net worth, Home Depot’s earnings per share were still 38% higher than market expectations in 2008, stabilizing its stock price. Its market cap climbed steadily and reached $100 billion in January 2013.

Home Depot was one of the few companies that benefited from COVID-19 as the pandemic forced populations into lockdown. The home supplier saw a 24.6% year-to-year rise in sales in the second quarter of 2020, the peak of the first wave, and an 80% increase in digital sales overall that year.

Its market cap grew from $238.22 billion in January 2020 to $306 billion in October before going up by more than $100 billion in the next year to $428.82 billion in December 2021.

Home Depot’s fiscal year ends on the last Saturday of January with a full report published on its website in the quarter.

Home Depot Revenue

According to Home Depot’s first public financial report in 1982, its annual revenue was $51 million, a 131% increase from the previous year when it first went public. Facilitated by the housing boom, the home improvement retailer’s sales rose steadily to $83.97 billion in 2006 before the real estate bubble burst.

The 2008 financial crisis hit the industry hard. Home Depot cut down its workforce by 10% and restructured its production flow to save warehouse space. Its sales dropped by 20% from its 2006 figures to $66 billion in 2009 before recovering gradually as the economy improved. In 2017, it made its first $100 billion in sales.

When COVID-19 forced people to stay home, a survey estimated that 70% of consumers took up at least one home project. The new surge in home improvement interest pushed Home Depot’s sales to grow exponentially.

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Prior to the pandemic, the company’s annual sales in 2019 were $110 billion, a $2 billion increase from the year before. In 2020, it increased by over $20 billion to $132.11 billion and then to $151.61 billion in 2021, an “unprecedented growth” period as remarked by the company’s CEO Ted Becker.

As the world returned to normal and people’s demand for home supplies decreased, Home Depot recorded a revenue drop for the first time since the 2008 financial crisis in 2023 to $152.67 billion.

Home Depot Dividend History

Home Depot paid its first dividend in May 1987 at $0.000439 per share. Since then, it has been paying dividends quarterly. In 2024, it paid dividends 4 times at $2.25 per share with a dividend yield of 2.20%.

Over the years, Home Depot has split its stock 13 times. The last stock split happened over 25 years ago in 1999. If you had purchased one share in its IPO, it would have turned into 341 shares in 2024 after the 13 stock splits. Although Home Depot hasn’t announced plans for future stock splits, analysts believe it’s highly possible if its stock continues to grow.

As of 2024, Home Depot’s stock has shown a 1,730,000% return since its IPO, meaning if you invested $1,000 in its IPO, the money is worth more than $17 million in November 2024.

Who Owns Home Depot?

Home Depot is primarily owned by large institutional investors. As of September 2023, The Vanguard Group and BlackRock held a combined 16.53% ownership of Home Depot’s stock.

The largest home improvement retailer in the world operates as a publicly traded company with its ownership distributed among various stakeholders. Beyond institutional investors, Home Depot has individual stake ownership, featuring notable figures such as former CEO Craig Menear and the CEO in 2024, Ted Decker.

When was Home Depot Founded?

Home Depot was originally founded on April 14th,1978 by Bernie Marcus and Arthur Blank. The two businessmen were motivated to open a home improvement and hardware store following their dismissal from Handy Dan Home Improvement Centers. Home Depot Inc. was officially incorporated in Delaware in June of the same year.

Benefiting from the financial support provided by investment banker Ken Langone, Marcus and Blank opened the first Home Depot stores in Atlanta, Georgia in June 1979.

Bernie Marcus and Arthur Blank signed a leasing deal with JCPenney to lease multiple Treasure Island stores. The first two stores were located on Memorial Drive and Buford Highway. They were approximately 60,000 square feet each.

Home Depot’s Treasure Island stores in Atlanta had an extensive inventory of 25,000 products, making them the largest hardware store and first home improvement retailer at that time.

The home improvement retailers industry was transformed with Marcus and Blank’s innovative concept of a one-stop shop for do-it-yourselfers and professionals.

As Marcus put it himself in his and Arthur Blank’s book Built From Scratch:

We helped create a market of male and female “weekend warriors” who confidently glide from project to project – and call on us for assistance whenever they hit a rough spot.

Growth and Development of Home Depot

As of January 2024, Home Depot had a market cap of $340 billion. According to Market Cap data, this makes Home Depot the 25th most valuable company in the world. Let’s delve through the years and explore how the growth of the one-stop shop and significant events have shaped its legacy.

The Early Years of Home Depot: 1978-1981

By the end of 1979, Home Depot operated three stores in Atlanta with an average weekly sales of $81,700. Furthermore, the company employee count grew to 200 associates, demonstrating its rapid expansion within the first year of the store opening.

To attract more customers to Home Depot in its early days, Marcus and Blank harnessed various marketing tactics. For example, their kids promoted the hardware store by distributing $1 bills to customers who walked into the store.

In 1980, Home Depot launched product knowledge training seminars. They offered hands-on sessions that empowered customers with the skills to use tools, complete projects, and navigate the store’s products.

This emphasis on education became integral to Home Depot’s excellent customer service, reflecting the company’s commitment to not only selling products but also ensuring customers felt confident in their do-it-yourself endeavors.

Subsequently, in 1981, Home Depot branched out of Atlanta and opened 2 new stores in Hollywood and Fort Lauderdale.

1981: Home Depot’s IPO

Home Depot had its initial public offering (IPO) on September 22, 1981, under the ticker symbol “HOMD” on the Nasdaq stock market. The initial offering price during Home Depot’s IPO was set at $12 per share.

The IPO marked a significant milestone in Home Depot’s history, providing the company with capital to support its expansion and further establish its presence in the home improvement retail sector.

As of January 2024, one share of Home Depot was worth $339, reflecting a stock price increase of approximately 2,725% in 43 years.

According to Yahoo Finance, the peak value per Home Depot share was recorded in December 2021, reaching $415 per share.

Since its IPO, Home Depot has undergone a total of 13 stock splits. The last split took place on December 31, 1999, at a 3-for-2 split with the stock price at $102 per share.

Dominating The Home Improvement Market: 1982 – 1990

In the summer of 1982, Home Depot installed its pilot point-of-sale systems, streamlining customer checkouts. These POS systems provided improved control over orders, distribution, and merchandise inventory.

By 1983 Home Depot had 9 big box stores, which varied in size from 63,000 to more than 100,000 square feet. Additionally, each store featured an extra 4,000 to 10,000 square feet of outdoor space dedicated to garden and landscaping products.

In the same year, Home Depot experienced a surge in customer transactions, rising from 326,000 to 8,479,000. Furthermore, Home Depot’s average weekly sales increased from $81,700 to $360,300.

In 1984 Home Depot acquired Bowater Inc.’s Bowater Home Center Inc. unit for approximately $38 million, consisting of cash and a convertible subordinated debenture. This acquisition presented Home Depot with an immediate chance to enter the Dallas market. Bowater Home Center’s 9 stores would enrich Home Depot’s collection of stores, which included 22 retail warehouse locations at the time.

Home Depot began to focus on the professional market in the 1980s. The home improvement and hardware store recognized the business potential in serving contractors and tradespeople.

As a result, Home Depot sales grew across America, reaching an annual revenue of $1 billion in 1986. The company began to rapidly expand its store network beyond Atlanta, signaling a growing demand for its unique retail concept.

By 1989, Home Depot had established 100 big box stores across the US, solidifying its position as the largest home improvement retailer in the country by 1990.

The Rapid Expansion of Home Depot Stores: 1991 – 1999

Professional customers accounted for 20% of Home Depot’s total customer base in 1991. Home Depot implemented separate checkout desks, introduced specialized employees known as “Homers” to cater to these clients’ needs, and facilitated easier access to credit.

The first Home Depot EXPO Design Center opened in San Diego, California in 1991. Expo Design Centers was a specialty concept developed by Home Depot. The stores offered high-end specialized home improvement products.

Known for curated selections and design services, these stores featured extensive showrooms. However, due to economic challenges, Home Depot closed Expo Design Center stores in 2009.

By 1993, Home Depot ran 263 warehouse-style stores across 231 cities in 23 states, opening approximately one store per week. Each Home Depot store averaged more than 100,000 square feet, with over 30,000 building materials, home improvement supplies, and outdoor products.

In 1995, Home Depot introduced its first Tools Rental Center in Nashville, Tennessee. A variety of tools and equipment were available to customers for rent, including power tools and landscaping gear. As of January 2024, this Home Depot service still exists. It caters to customers who prefer renting over long-term ownership or want to test a tool before making a purchase.

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Home Depot released its Home Improvement 1-2-3 book in 1995, which aligned with its strategy to engage the do-it-yourself communities. The comprehensive guide provided expert advice from Home Depot associates.

Bernie Marcus passed the CEO role to Arthur Blank in 1997. However, Blank stepped down in 2000, marking the first instance in Home Depot’s history where an outsider, Robert Nardelli took charge as the CEO of the nation’s largest home-improvement chain.

Both Marcus and Blank retained their positions as chairmen at Home Depot until 2001-2002.

The one-stop shop achieved further expansion in 1998 by providing customers with three new, highly popular product lines. This strategic move not only enhanced Home Depot’s presence but also fueled rapid growth in key product categories.

Home Depot Goes International

Home Depot entered the Canadian market in 1994. The company opened a total of 12 Home Depot locations in 3 Canadian provinces.

The acquisition of a 75% interest in five Aikenhead’s Home Improvement Warehouse stores in Canada was the most significant accomplishment for Home Depot in 1994. By 2003, Home Depot had 100 stores in Canada.

In 1997, Home Depot surpassed the significant milestone of $1 billion in net earnings, reaching $1.2 billion. Home Depot had a total of 624 stores in 41 states in the United States and 4 provinces in Canada.

Additionally the same year, Home Depot expanded its service hours to 24 hours a day in 15 store locations, in Hollywood and California.

In 1998, Home Depot entered the market in South America. Santiago, Chile, marked the debut of Home Depot’s two first stores outside of North America. The home improvement retailer also opened 1 Home Depot store in Puerto Rico.

Home Depot’s Philanthropic Contributions

Home Depot’s associate volunteer program “Team Depot” was established in 1993. In collaboration with the Home Depot Foundation which was founded in 2002, Team Depot helps veterans and restores communities affected by natural disasters.

Dedicated to making a positive impact, Home Depot allocated a philanthropic budget of over $10 million in 1997, directing these funds back to the communities it serves. Additionally, the largest home improvement retailer introduced Kids Workshops to teach minors basic building skills and safety.

Established in 2002, The Home Depot Foundation has been a key player in supporting veteran causes. It has invested over $500 million since 2011.

With a commitment to contribute $750 million to veteran causes by 2030, the foundation is also dedicated to nurturing the future workforce, by allocating $50 million to the Path to Pro program.

Home Depot’s Path to Pro program is an initiative designed to support and educate individuals in the skilled trade industry such as construction workers, electricians, and plumbers.

In addition to its focus on veterans and skilled trade workers, Home Depot aids damaged communities by allocating budgets to reconstruction efforts necessitated by natural disasters.

For example, more than $87 million was given to aid the Gulf community’s reconstruction efforts after Hurricane Katrina in 2006.

Adaptation and Innovation of Home Depot: 2000 – 2013

In 2000, Home Depot launched its first ecommerce site with test markets in Las Vegas. This initiative positioned them as one of the pioneers of home improvement retailers to operate an online store.

Home Depot also introduced its installation program and delivery services in 2000, through a pro desk staffed by associates dedicated to the pro customer. Home Depot’s installed sales business generated approximately $2 billion in sales in fiscal year 2000, with an annual growth rate of 40%.

By 2001, Home Depot operated four transit facilities where products were swiftly pulled from the shelves, packed, and delivered within 24 hours.

Home Depot was one of the first home improvement retailers to introduce self-checkout service counters in 2002. The introduction of self-checkout counters marked Home Depot as an industry trailblazer. It set the stage for the adoption of modern, customer-centric technologies in the home improvement retail sector.

In 2007, Home Depot launched its first Rapid Deployment Center (RDC). This is one of the most remarkable supply chain transformations in retail history because it revolutionized the efficiency and responsiveness of its retail operations.

Moreover, in the same year, CEO Robert Nardelli resigned from Home Depot, passing the executive position to Vice President Frank Blake.

Home Depot’s Major Acquisitions in the Early 2000s

Home Depot made several valuable acquisitions in the 2000s. The largest home improvement retailer began the millennium by acquiring Total Home in 2001, marking the introduction of Home Depot stores in Mexico.

The company further expanded its presence in Mexico with its acquisition of Del Norte in 2002. As of December 2022, there are 133 Home Depot stores across Mexico.

In 2005 Home Depot acquired 21 companies for its Home Depot Supply and Home Services businesses. Subsequently, Home Depot acquired Hughes Supply for $3.51 billion in 2006. The acquisition of Hughes Supply helped Home Depot strengthen its position in the professional and commercial segments of the home improvement industry.

Home Depot Adopting To The Digital Era

In 2010, Home Depot became the first brick-and-mortar retailer to introduce mobile applications on the three major smartphone platforms at that time.

Home Depot enhanced the shopping experience by providing customers with access to information, tools, and resources while on the go. The apps included features such as product information, store locators, promotions, and the ability to make purchases directly from mobile devices.

Additionally, Home Depot was one of the first home improvement retailers to introduce mobile phones for associates to its US stores. The FIRST Phones played a crucial role in improving how the store connected with customers and managing its supply chain.

In 2015, Home Depot launched its Next Generation FIRST Phone to its stores with more up-to-date features.

In 2011, Home Depot introduced the option to buy online and pick up or return items in-store through HomeDepot.com. This feature has offered Home Depot customers increased convenience and flexibility in their overall shopping experience.

Building on this commitment to innovation, by 2015, Home Depot had further fortified its interconnected retail strategy. The company established three online fulfillment centers and multiple technology centers, solidifying its position at the forefront of retail technology and customer convenience.

The Launch of Home Depot’s Loyalty Program

Home Depot introduced the Pro Xtra loyalty program in 2012, enhancing benefits and rewards to better support professional customers in their businesses. As of 2023, Home Depot had introduced three new tiers — Member, Elite, and VIP— in its Pro Xtra programs to cater to professionals at varying levels.

Home Depot’s Decade of Transformation: 2014 – 2024

From 2014 to 2024 Home Depot navigated challenges and capitalized on opportunities to solidify its position as the largest home improvement retailer. From leadership changes to the COVID-19 pandemic, this decade was a transformative period for Home Depot stores.

Home Depot’s Years of Leadership Shifts

In November 2014, Craig Menear was appointed CEO and president of Home Depot. Menear joined the Home Depot company in 1997, after holding several key roles with the largest home improvement retailer. Former CEO Blake Frank retired from all of his Home Depot duties in February 2015.

Edward “Ted” Decker was named CEO and president of Home Depot in 2022. Decker joined The Home Depot in 2000 and was named president and chief operating officer (COO) in October 2020.

The Expansion of Home Depot’s Portfolio

Home Depot continued diversifying its portfolio with valuable acquisitions. In 2015 the company acquired Interline Brands for $1.6 billion in 2015. The acquisition helped strengthen Home Depot’s position in broad-line maintenance, repair, and operations (MRO) products.

In 2017 Home Depot purchased Compact Power Equipment for $265 million in cash. Since 2009, the leading national provider of equipment rental and maintenance services has partnered with Home Depot to improve the customer experience through equipment and tool rental offerings.

In 2020, Home Depot purchased HD Supply for $8 billion. The prominent national distributor specializes in providing maintenance, repair, and operations products, particularly in the multifamily and hospitality end markets.

Home Depot Advances Delivery Services

In 2018, Home Depot expanded its reach by offering same-day delivery to 35 metro markets through partnerships with delivery service providers Roadie and Deliv.

In 2021, Home Depot further enhanced its delivery options by partnering with Walmart GoLocal, providing customers with convenient same-day or next-day delivery services.

As of 2024, Home Depot’s express delivery is received within 3 hours of placing an order. The largest home improvement retailer offers free shipping on over 1 million online items for orders over $45. However, delivery prices may vary based on product and postal code.

Home Depot’s Big Box Stores and Online Services Continue To Grow

In 2017, Home Depot hit a key milestone – sales exceeded $100 billion. By fiscal year 2022, the company made over $157 billion in global net sales, underscoring strong consumer demand for its home improvement offerings.

Additionally, Home Depot recorded over 1.6 billion customer transactions worldwide, highlighting its extensive reach and engagement with its diverse customer base.

By the end of Q3 2023, Home Depot had 2,333 retail establishments with a presence in every state in the US, including Puerto Rico, the US Virgin Islands, Guam, as well as 10 Canadian provinces and Mexico. In 2022, Home Depot owned 89% of the stores and leased 11%, maintaining an average total square footage of 240.9.

As of 2023, Home Depot had over 35,000 products in-store and 2 million products online. To enhance the fast fulfillment process of online orders, Home Depot opened a new distribution center in Dallas, Texas in 2021. The 1.5 million-square-foot facility dispatches millions of online products directly to customers’ homes or for convenient pickup at local stores.

In 2023, Home Depot unveiled the New Homeowners Hub. It is designed to empower the upcoming generation of current and future first-time homeowners with a wealth of valuable resources, including do-it-yourself guides, product recommendations, design inspiration, and more.

Home Depot’s Success During The COVID-19 Pandemic

Amidst the challenges posed by the COVID-19 pandemic, Home Depot experienced a significant surge in net sales, reflecting an increased focus on home improvement activities during COVID-19 lockdowns.

In 2019, Home Depot’s net sales amounted to $110.2 billion. During the peak of the pandemic in 2020, sales rose to $132.1 billion in 2020, and $151.1 billion in 2021. This increase can be attributed to the increase of do-it-yourself enthusiasts channeling their energy into home improvement projects.

Home Depot stood as the largest home improvement store in the US in 2020. The company surpassed competitors like Lowe’s and Menards.

Home Depot’s digital success reached new heights in 2020. The largest retailer in home improvement drew in over 3.6 billion website users and witnessed a remarkable 83% year-over-year surge in digital sales.

Moreover, 55% of online orders were fulfilled through a store, reflecting a clear preference among consumers for the convenience of online orders and curbside pick-up during the pandemic.

Home Depot was ranked among the top five ecommerce retailers in the US in 2021 and held the second position in online furniture and appliances sales by ecommerce net sales.

How Home Depot Built Success with Home Depot Employees

Home Depot stands out from other home improvement retailers because it provides customers with a unique experience centered around expertly trained floor associates. These employees go beyond merely selling or telling; they teach customers how to handle power tools, change a fill valve, or lay tile.

The emphasis on hands-on demonstrations led to the introduction of do-it-yourself clinics, customer workshops, and personalized one-on-one sessions. These in-person demonstrations have solidified Home Depot’s commitment to empowering customers with practical knowledge and skills for do-it-yourself projects.

Bernie Marcus summarized the essence of the company by underscoring that its success hinges on the dedication and expertise of Home Depot employees working in the stores daily:

We’re only as good as our people-especially the men and women working in our stores every day.

As per the company’s acknowledgment, much of Home Depot’s success comes from the entrepreneurial spirit encouraged amongst employees.

The Evolution of Home Depot Jobs

By the mid-1980s, Home Depot employed 5,400 workers. This number rose to 201,000 by the end of the 90s, underscoring the company’s emphasis on workforce commitment.

With a workforce of 475,000 across the US, Canada, and Mexico as of January 2024, Home Depot’s steady increase in associates proves its dedication to its employees’ development.

In February 2023  the company announced a substantial $1 billion investment in wage increases for its frontline hourly associates. In 2022, Home Depot promoted 65,000 associates in the US.

Employee Hiring Policies at Home Depot

In 2004, Home Depot joined AARP (American Association of Retired Persons) to recruit and train individuals aged 55 and above for positions within the largest home improvement retailer. The collaboration aims to engage and support a substantial number of older workers across the US.

Furthermore, Home Depot has hired people regardless of physical abilities since the 90s. For example in 1995, Home Depot employed its first Paralympic OJOP athlete.

How Much Does a Home Depot Employee Make?

As per Payscale data from January 2024, the average annual salary of a Home Depot employee is $74,441. However, salaries within the company vary, ranging from an average of $43,975 to $116,776 per year.

Staff software engineers have the highest reported average annual salary at $122,861, while retail sales associates have the lowest with an average of $30,657 annually.

Home Depot’s Top Sellers

According to FourWeek MBA, electrical and lighting items were Home Depot’s top-selling products in 2022, generating a total of $13.75 billion.

When looking at Home Depot’s overall revenue, the leading category was indoor garden products in 2022.

History of the Home Depot Logo

The Home Depot logo, created in 1978, has retained its original design since its inception. The iconic orange color, while undergoing three slight tone adjustments for added vibrancy, has remained unchanged since 1999.

The Home Depot logo was designed by branding specialist Don Watt in collaboration with founders Bernie Marcus and Arthur Blank. The “Big Orange” logo was inspired by crates used to transport freight, keeping in line with the “depot” theme.

The Home Depot logo font is stamped at an upright angle to signify success and adorned in orange to evoke a sense of activity.

As Bernard Marcus and Arthur Blank explained in their fiscal 1995 report:

When we designed the logo 18 years ago to represent our unique company, we were looking for a bold color that would make a statement and attract attention.

According to previous design sketches released by Home Depot, green and yellow were considered alternative branding color options for the largest home improvement retailer.

The Future of Home Depot

As the largest home improvement retailer, Home Depot will keep its status as the one-stop shop for quality home improvement items. As of Q3 2023, Home Depot had a 61.19% market share within the home improvement industry.

By 2028, Home Depot pledges to give 10 million hours of training to frontline associates and 2.5 million hours of leadership training. The largest home improvement retailer will provide 75,000 career advancement opportunities by 2028 for front-line associates.

Home Depot is adopting AI to boost efficiency in business operations. In January 2023, the home improvement retailer introduced a new app called Sidekick. The app is part of their hdPhones initiative, designed to help store associates manage tasks better.

Powered by machine learning, Sidekick guides associates on prioritizing tasks like restocking high-demand products and locating items on overhead shelves. This app will help Home Depot employees save time and increase productivity by:

1. Using a cloud-based ML algorithm to identify actionable tasks and determine when they should be done.
2. Employing machine vision to identify out-of-stock products and locate items in stores.
3. Notifying specific associates about priority tasks through a shared tasking engine.
4. Providing a dashboard with views for both associates and managers, showing where and how to complete tasks.
5. Integrating with other platforms to ensure data and task prioritization are current and aligned with overall business needs.

Home Depot’s dedication to employee growth and its ability to blend tradition with innovation provide valuable lessons for business owners. The home improvement retailers’ resilience and adaptability showcase how staying true to its roots propels it into a dynamic and promising future.

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