What We Learned This Week

Home Improvement Still on Hold: Home Depot delivered a strong quarter this week, beating both revenue and earnings expectations and raising guidance for the remainder of the year. Comparable store sales were better than anticipated, helped by favorable weather and some hurricane-related stockpiling. Yet despite this, the stock barely moved initially and ultimately closed lower on the day. The reason? Consumer hesitation around big-ticket purchases and large renovation projects. Although the Fed has cut interest rates, rates on housing-related lending (like mortgages and home equity lines) remain high, keeping many consumers in wait-and-see mode. This adds a layer of uncertainty, as moving or taking on major home projects remains costly.

For us, this situation presents an intriguing opportunity. Pent-up demand for home improvement is clearly building; it’s a matter of when—not if—consumers will either adjust to current rates or see them drop to more appealing levels. By spring, we could see this translate into more spending. For those with a longer-term view, Home Depot may be worth a look.

Amazon takes on Shein and Temu: Amazon launched a new discount web store, Amazon Haul, to compete directly with Chinese discount giants Temu and Shein, which have gained immense popularity among U.S. consumers for their affordable, Chinese-sourced goods. The storefront offers a range of products—including apparel, home goods, and electronics—all under $20, with Amazon assuring quality checks across all items.

Like its competitors, Amazon Haul leverages direct-from-China shipping to offer low prices, but this approach means longer delivery times, diverging from the fast, Prime-style shipping many Amazon shoppers expect. Orders over $25 qualify for free shipping, while smaller orders incur a $3.99 fee. Amazon is betting that consumers looking for ultra-low prices will prioritize value over speed, just as they do with Temu and Shein. It’s a bold move from a familiar name, and it will be interesting to see if U.S. consumers embrace the trade-off from such an established brand.

Search for Iger’s Successor Heats Up: Disney’s board is ramping up its succession planning as the 2026 deadline to name Bob Iger’s successor approaches. The first major step is the appointment of James Gorman, former CEO of Morgan Stanley, as chairman, succeeding Nike’s Mark Parker in January. Gorman, already heading Disney’s succession committee, has been praised for executing a smooth leadership transition at his bank and is now looking to apply that model here. While the board is meeting regularly with four internal candidates, Gorman is also reportedly interested in considering external options, including EA’s CEO.

The search has high stakes: Disney has struggled to find a viable successor to Iger, whose return followed the turbulent exit of his chosen successor, Bob Chapek. Iger, who has extended his contract multiple times, is expected to step down definitively in 2026. With Disney’s stock lagging, uncertainty around Iger’s successor adds to investor concerns. Finding a new leader who can navigate Disney’s complex mix of businesses and re-energize its brand is essential for the company’s future.