Home Depot (HD) earnings Q2 2025

Home depot On Tuesday, stuck from its entire year point of view, even the company was slightly shy with Wall Street’s expectations for quarterly income and revenue.

The Home Improvement Retailer reiterated that it expects a perfectly total sales that will increase 2.8% and comparable sales, which takes out the impact of one -time factors such as the inauguration and calendar difference of the store, to grow about 1%.

However, it remembered for the expectations of Wall Street’s earnings Second straight quarter.

According to a survey by Analysts by LSEG, what is the home depot for the second quarter compared to Wall Street’s estimates:

• earnings per share: $ 4.68 adjusted vs $ 4.71 expected
• Income: $ 45.28 billion vs $ 45.36 billion is expected

In a three -month period ending on August 3, the net income of the home depot was $ 4.55 billion, or $ 4.58 per share, slightly below $ 4.56 billion, or $ 4.60 per share, In the year-old period. Revenue increased by about 5% from $ 43.18 billion in the year-old period.

The report is to fall down the first earnings and revenue expectations of the Home Depot since May 2014.

The results of the home depots show that the company is still waiting for more pick-up in the improvement activity in the house, whether it is motivated by consumers’ own innings in high housing turnover, low mortgage rates or mentality.

In an interview with CNBC, Chief Financial Officer Richard McFel said that the company continues to look at the effects of the “defoly mindset” from the owners of the household, which began in the mid -2010.

Nevertheless, McPhail said, there are encouraging signs in the retailer’s business: Big-Ticut transactions, which the company defines as more than $ 1,000, increased by 2.6% compared to the year-old quarter. Out of their 16 merchandising departments, there are twelve years-away sales benefits. He said that every month of the quarter improved the trend of sales year to year, with comparative sales compared to 0.3% in May, 0.5% in June and 3.3% in July.

He said, “We saw that the creation of speed in its main categories continues throughout the quarter,” he said.

McPhail said that the fiscal 2025 of the home depot is not a potential rate deduction by the Outlook Federal Reserve, which can help borrow for homebuying and large projects.

He said, “We do not embed any approach to changing the atmosphere of rate, nor demands to change big projects,” he said.

As the real estate market remains sluggish and the cost of borrowing remains more, the home depot has seen beyond the owners of the house that come to its store to buy other supply for kitchen equipment, paint boxes or do-It-in projects. Home depot Acquired SRS distributionA company that sells supplies to roof, landscaping and pool professionals, Last year for $ 18.25 billionIt announced in June that it was GMS buyingA special building products distributor for about 4.3 billion dollars. According to the Home Depot, the GMS deal is expected to be closed by the end of the financial year of the Home Depot at the end of January.

McPhail said about 55% of the home depots sell from Pros and about 45% SRS, it-IT-VOURSELF from customers.

Trade increased by 1% in comparative sales and 1.4% in the US during the fiscal second quarter. The Home Depot said that foreign exchange rates negatively affected the company’s comparable sales negatively with about 40 basis points.

This comparable sales growth is only in the last 11 quarter, which has been reported by the Home Depot to year to year.

For the fiscal second quarter, McFel said that sales on both Pro Side and DIY sides of the business increased from year to year. They refused to share the percentage growth, but said that they were “relatively relatively to each other.”

Tariff has added uncertainty to the approach to retailers, though. McPhail told CNBC in May that the home depot did not plan to increase prices in its store, even as other retailers including Walmart, Warned the costs related to tariffs Will be too much to absorb.

Since May, however, the US tariff policies have changed. High fee In early August, dozens of American trading partners began. Other major agreements live in flow. President Donald Trump last week High American tariff delayed on Chinese goods The conversation continues for another 90 days.

McPhail told the CNBC Home Depot that its pricing has not changed the approach. And, he said, most of its imported products sold in the quarter overtook tariffs.

The customer base of the home depot is at a strong financial position compared to American consumers, which can help the company’s weather high cost. About 90% of its do-in-customers are owned by their own homes and home professionals who shop with home depots, hired by home owners.

The customer transaction in the home depot website and stores rose to 446.8 million as compared to 451 million in the quarter. Nevertheless, the shopkeepers spent slightly more during those transactions, with an average ticket to an average of $ 88.90 from an average ticket to $ 90.01. Those metrics excluded the results from the acquisition SRS and HD supply, the company said.

The shares of the Home Depot closed at $ 394.70 on Monday. After Monday’s closure, the company’s shares are around 1.5% so far this year. This reflects about 10% profit of S&P 500 during the same period.

– Robert Hum of CNBC contributed to this report.