As the pandemic has everyone staying home and tending to long procrastinated home improvement projects, Home Depot is reaping the profits. With the highest quarterly sales growth in 20 years, the company plans to compensate essential employees who worked throughout the pandemic with a raise. According to Yahoo Finance, Home Depot joins other big box retailers also giving their minimum wage employees a pay bump. Still, Home Depot investors are spooked and its shares dropped after the announcement.
MarketScale Radio hosts Tyler Kern and Daniel Litwin analyze the reaction, expressing disappointment in shareholders and stock traders bearish reaction to rewarding essential frontline workers. Most major retailers have seen profits amid the pandemic as a direct result of the low-income essential employees that continued work. Litwin adds that the corporate pay bump should come in conjunction with government stimulus to help these frontline workers reach a livable wage.
KEY POINTS:
- Home Depot sees $33 billion in revenue and its strongest quarterly sales growth in 20 years.
- Home Depot takes $1 billion and pledges to put it in the pockets of employees.
- Shareholders react bearishly at the internal investment and shares drop.
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