Home Depot CEO takes medical leave, 2 executives step in

Home Depot shares fell Wednesday after CEO Ted Decker announced a temporary medical leave of absence, with two senior executives appointed to lead the retailer during his recovery.

"The Home Depot has the best management team in retail. Both Ann-Marie and Richard are strong, seasoned executives who have worked together for more than 20 years," Greg Brenneman, independent lead director of the board, said in a statement.

Senior EVP Ann-Marie Campbell will handle day-to-day operations, while EVP and CFO Richard McPhail will manage financial operations and Pro subsidiaries. Brenneman will chair the board during Decker's absence. Neither executive received a pay adjustment for the additional responsibilities, according to a securities filing.

The announcement comes just under a week before Home Depot reports fiscal second-quarter earnings on Aug. 18. The company reported first-quarter sales of $41.8 billion, up 4.8% from a year earlier, and reaffirmed full-year guidance of 2.5% to 4.5% total sales growth for fiscal 2026.

Decker, 63, has led Home Depot since March 2022 and joined the company in 2000, holding senior roles in merchandising and retail finance. Campbell, 61, joined Home Depot in 1985 as a cashier and worked her way up to senior EVP of U.S. stores and operations. McPhail, 56, has been CFO since September 2019 and joined the company in 2005. The board made the appointments in alignment with Decker's recommendation.

The company did not disclose the reason for Decker's leave. Home Depot operates 2,361 retail stores and more than 1,280 SRS locations across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico, employing more than 470,000 people.

The leadership transition comes as home improvement chains including Home Depot and Lowe's have been investing in their professional business catering to contractors and builders, as inflation pressures force consumers to defer smaller projects. McPhail flagged in May that homeowners were continuing to defer spending on larger projects, even as underlying demand remained consistent with trends seen throughout fiscal 2025.

The unexpected medical leave creates leadership uncertainty at a major S&P 500 retailer, which could pressure the stock in the near term. Investors may watch for any impact on quarterly guidance when Home Depot reports earnings next week. If the leave extends beyond the expected few months, it could raise questions about succession planning and operational continuity at the world's largest home improvement retailer.

This article is for informational purposes only and does not constitute investment advice.