By all accounts, Home Depot (NYSE:HD) had a remarkable 2020. It took 19 years since its founding for Home Depot to reach $20 billion in revenue, but that’s exactly by how much sales grew in 2020 alone. Consumers, infused with multiple sources of government stimulus money along with an unusually limited number of options to spend it, turned their attention to home improvement projects.
Now, as the COVID-19 vaccination campaign gains traction in the U.S. and states allow more businesses to reopen, people have more options for spending. And after staying indoors for an extended period of time, there may be pent-up demand for activities outside of the home. As a result, it would be difficult for Home Depot to match last year’s torrid sales pace in fiscal 2021.
However, there is one trend that should act as a tailwind for Home Depot this year.