Here are some stats for Home Depot as per their 2006 10K filing. Gross profit .......... 32.8% Net income B4 taxes ... 10.3% Net income after taxes ... 6.3%
I believe that Home Depot can certainly buy much better than Sulja. I also beleive that they have many more stores and revenue dollars over which to spread their overhead. IMO if Sulja makes 10% Net income after taxes they are doing extremely well for a little lumberyard in a depressed area.