Home Services

Home Depot’s international division is providing the company some cheer in an otherwise gloomy holiday season.Nine percent of the Atlanta-based company’s revenues and 11 percent of its operating profits last quarter came from foreign stores in Canada, Mexico and China, Annette Verschuren, Home Depot’s president for Asia and Canada, said in an interview Monday.

Verschuren said the figures tell us that our international organization is critical to growth.

It was the first time the company has provided figures for international sales. Executives would not comment on whether profits earned by Home Depot outside of the United States had increased.

The release of the data comes as Home Depot is suffering from fallout in the slumping U.S. housing market. On Nov. 13, the company reported a 27 percent drop in third-quarter earnings and lowered its financial forecast for the year.

Home Depot bought the stores last year from Chinese chain Home Way. Since a formal opening last August, sales at the Chinese locations have exceeded our expectations, Verschuren said. She declined to say whether the stores had been profitable but said that Home Depot is investing a lot in China.

The company has also had to adjust to the Chinese business practice of suppliers demanding to sell directly to customers. Many of Home Depot’s Chinese vendors require the company to allow sales staff hired by the suppliers themselves to work in the stores, compromising customer service.

To deal with the problem, Home Depot plans to increase sales of its own product lines - including Hampton Bay lamps and Pegasus bathroom fixtures - and to pressure suppliers to reduce their number of salespeople in stores.

Home Depot takes a long-term view to building profitability in China.

Chinese are relatively new to home ownership and are learning how important this investment is to their lives, Verschuren said. We’re seeing the beginnings of a do-it-yourself culture.

Technorati : Building Profitability, Financial Forecast, Home Depot

Tags: anc, annette, bathroom fixtures, Building, business, company, crease, customer service, customers, Home Depot, housing market, lt, pace, provide, Stores

Related posts

• Around the Mountains: Fingers wagged after backcountry collision
• Moves to Protect Children, and Bottom Lines
• Around the Mountains: Steamboat Resort mistakenly sends out spreadsheet with personal information
• The Home Depot Announces Third Quarter Results
• Remodeling your home may or may not bring a payoff
• Jiffy Lube franchisee of the year moves to former Tower home
• Home Depot’s Third Quarter Results Decline
• Home Depot Amendment
• Ex-Home Depot Chief Taking Reins at Chrysler
• Citing Weak Housing Market, Home Depot and Sears Lower Estimates

Did you enjoy Sales in China, other countries cheer Home Depot? Subscribe to RSS Feed.

Social Bookmarking