Home Depot sets the bar high
Goal for 2015 may be unattainable
While Home Depot (HD) posted a strong second-quarter profit, analysts are unsure if the home improvement store can meet its goal of getting operating margins up 12% by 2015, The Wall Street Journal reported. The paper outlines a few of the retailer's challenges:
On the one hand, that would be quite an accomplishment. Even in its best year of 2006, Home Depot managed only 11.6% and has averaged in the high single digits over the past decade.
On the other hand, analysts see a return to 2006's record level this fiscal year. So 2015's target wouldn't represent much of an incremental boost to earnings either.