Home Depot Gains (HD) Q2 2025

Home Depot Stuck by its annual prospects on Tuesday, even if the company was slightly shy by Wall Street expectations for profits and quarterly income.

The domicile renovation retailer has reiterated that he expects total annual sales to increase by 2.8% and comparable sales, which remove the impact of unique factors such as store openings and calendar differences, to increase by around 1%.

However, he missed the expectations of Wall Street’s profits for the second consecutive quarter.

Home Depot’s shares have dropped by around 2% in the market prior to the market.

Here is what Home Depot has reported for the second tax quarter compared to the estimates of Wall Street, according to a survey of analysts by LSEG:

• Profit by action: $ 4.68 adjusted vs $ 4.71 expected
• Income: $ 45.28 billion compared to $ 45.36 billion expected

During the three -month period which ended on August 3, the net profit of Home Depot was $ 4.55 billion, or $ 4.58 per share, down slightly compared to $ 4.56 billion, or $ 4.60 per share, during the same period of the year. Income increased by almost 5%, compared to $ 43.18 billion in the previous period.

The report has been the first of Home Depot since May 2014 not to be both on the expectations of profits and income.

The results of Home Depot reflect that the company is still waiting for an increase in home improvement activity, that it is stimulated by a higher turnover of housing, lower mortgage rates or a change in consumer mentality.

In an interview with CNBC, the financial director Richard McPhail said that the company continues to see the effects of a “state of reference spirit” of the owners, which started roughly in the middle of 2023.

However, McPhail said, there are encouraging signs in the activities of the retailer: large ticket transactions, which the company defines more than $ 1,000, increased by 2.6% compared to the quarter of the previous year. Twelve of its 16 merchanting services displayed sales gains from one year to the next. And sales trends from one year to another have improved each month of the quarter, with comparable sales up 0.3% in May, 0.5% in June and 3.3% in July, he said.

“We have absolutely seen the momentum continue to build in our basic categories throughout the quarter,” he said.

McPhail said that the prospects for Home Depot’s fiscal year 2025 do not take into account potential rate reductions by the federal reserve, which could stimulate borrowing for the purchase and larger projects.

“We do not integrate any point of view on the change in the rate environment, nor on the demand of major projects that change,” he said.

While the real estate market remains slow and the borrowing costs remain high, Home Depot has looked beyond the owners who come to its stores to buy kitchen devices, cans of paint or other supplies for DIY projects. Home Depot acquired SRS Distribution, a company that sells supplies to roofing, landscaping and swimming pool professionals, for $ 18.25 billion last year. He announced in June that he bought GMS, a distributor of specialized construction products, for around $ 4.3 billion. The GMS agreement should end by the end of the Home Depot exercise at the end of January, according to Home Depot.

McPhail said that around 55% of Home Depot sales came from pros and around 45% come from customers to do yourself, when SRS ‘inclusion.

Comparable sales increased by 1% throughout the company and 1.4% in the United States during the second tax quarter. Home Depot said that exchange rates had a negative impact on the company’s comparable sales of around 40 base points.

This comparable sales growth only marks the second quarter out of the last 11 that Home Depot has declared an improvement from one year to the next.

For the second tax quarter, McPhail said that sales from one year to the other on the professional side and the company’s DIY had increased. He refused to share percentage increases, but said that these increases were “relatively in accordance with each other”.

However, the prices have added uncertainty to the prospects for retailers. McPhail told CNBC in May that Home Depot did not plan to raise prices in his store, even if other retailers, including Walmart, warned that the costs related to the prices would be too much to absorb.

Since May, however, American tariff policies have changed. Higher prices started in early August on dozens of American business partners in early August. Other major agreements remain in flow. President Donald Trump last week delayed higher American prices on Chinese products for 90 days as negotiations continue.

McPhail said CNBC Home Depot had not changed its price approach. And, he said, most of its imported products sold during the quarter landed before the prices.

Home Depot’s clientele tends to be on a stronger financial basis than US consumers overall, which could help the company undergo higher costs. About 90% of its customers to do yourself have their own house and home professionals who buy with Home Depot tend to be hired by the owners.

Customer transactions on the Home Depot website and stores dropped in the quarter at 446.8 million compared to the 451 million during the period of the previous year. However, buyers spent a little more during these transactions, the average ticket going to $ 90.01, against an average ticket of $ 88.90 during the same period. These measures exclude the results of SRS and HD Supply acquisitions, said the company.

Home Depot’s actions closed $ 394.70 on Monday. From the end of Monday, the actions of the company have increased by around 1.5% so far this year. This follows the gain of almost 10% of the S&P 500 during the same period.

– Robert Hum of CNBC contributed to this report.