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Menear says Home Depot plans to stay on a roll


Thanks to homeowners who are sitting on their houses and Millennials who are starting to buy some, Home Depot CEO Craig Menear sees a rosy revenue picture ahead for home centers.

On the occasion of Home Depot’s having hit an all-time-high stock price of $139, MeneartoldCNBChe looked forward to continued business increases from all segments in his consumer base.

“We’ve done a lot of study of the Millennial generation and what we’ve seen is that they’re going to follow previous generations. It’s kind of a six-year-delayed process. If you look at what’s happened over the last several quarters, 35% of new household formation is coming from the tail end of the Millennial generation,” Menear said.

Core customers, meanwhile, continue to invest more in his stores because they are not selling and moving to new houses as often as they used to. As a result, said Menear, “We see growth in transactions in both small and large ticket items and people shopping across the stores.”

Aging Baby Boomers, he noted, are spending more on Home Depot’s “do-it-for-me” businesses, which include services such as new kitchen construction and professional contractor supply.

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