Home Depot Posts Narrow Q2 Sales Miss, Reaffirms FY2025 Outlook

Home Depot reported second-quarter sales of $45.3 billion for fiscal 2025, slightly below analysts' estimates, driven by reduced spending on large-scale home renovations amid price-conscious consumers. Despite this, the company experienced a 4.9% sales increase from the prior year and a 1.4% rise in U.S. comparable sales, marking steady consumer engagement in smaller home improvement projects. Adjusted diluted earnings per share stood at $4.68, consistent with the previous year, while net earnings were $4.6 billion. CEO Ted Decker highlighted strong execution and continued market share growth, attributing momentum to broader customer engagement in smaller projects. Analysts noted that the ongoing recovery in U.S. same-store sales, including demand for remodeling projects, reflects gradual improvement in the housing market despite high interest rates. Home Depot reaffirmed its full-year guidance, projecting 2.8% net sales growth and 1% same-store sales growth for fiscal 2025.