Home Depot Invests $1 Billion in Wage Increases as Sales Drop
Home Depot Inc. said Tuesday it will spend $1 billion more in annualized compensation for its frontline hourly workers in the United States and Canada.
The Atlanta-based home improvement chain said every hourly employee will get a raise starting this month. Starting pay will be at least $15 per hour.
Wells Fargo analysts, however, said the move could raise doubts about the profitability of Home Depot.
The move was announced as Home Depot faces a surprise drop in fourth-quarter sales, and on Tuesday it forecast an annual profit below Wall Street estimates. Its shares dropped 5.4 percent as a result, to a three-month low….