- Home Depot’s comparable sales rose by only 0.2%, which was below the anticipated 1.36% increase.
- U.S. comparable sales experienced a slight rise of 0.1%, falling short of the expected 1.25% growth.
- The company’s net sales amounted to $41.35 billion, surpassing the forecast of $40.97 billion with a 2.8% year-over-year increase.
- Adjusted earnings per share (EPS) was $3.74, missing the previous year’s $3.78 and the estimate of $3.84.
- The EPS for the quarter was $3.62, slightly lower than last year’s $3.67.
- Average ticket sales increased by 2% year-over-year, totaling $90.39, slightly above the projected $89.71.
- Merchandise inventories were $26.20 billion, higher than the estimated $24.99 billion.
- The total number of Home Depot locations stood at 2,356, close to the expected 2,357.
- Selling, general, and administrative expenses rose 5.9% year-over-year to $7.64 billion, exceeding the forecast of $7.51 billion.
- For 2026, Home Depot forecasts sales growth of approximately 3% compared to the previous expectation of 2.8%.
- The company anticipates an operating margin of around 12.6%, lower than prior expectations of 13% and the estimate of 13.3%.
- EPS growth is expected to decline by about 6%, compared to the previous forecast of a 3% decline.
- Adjusted EPS growth is projected to decrease by approximately 5%, previously expected to decrease by 2%.
- Recent acquisition added about $900 million to total sales, with expectations of $2 billion in full-year incremental sales.
- Home Depot cited a lack of storms in the third quarter, causing unexpected pressure in some product categories.
- The company noted stable underlying demand but acknowledged that the anticipated rise in third-quarter demand did not occur.
- Consumer uncertainty and ongoing challenges in the housing market are impacting home improvement demand.
Home Depot Inc on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have been closely monitoring Home Depot Inc, the leading home improvement retailer in the U.S., to provide investors with valuable insights. In a recent report titled “Home Depot: Inside The Core Business Strategy to Win Amid High Interest Rates!“, Baptista Research highlighted the solid performance of Home Depot in the second quarter of 2025, with total sales reaching $45.3 billion. Although comp sales saw a modest rise of 1% year-over-year, U.S. comps were slightly higher at 1.4%, showing promising growth. Adjusted diluted earnings per share also remained stable, slightly increasing from the previous year.
Moreover, Baptista Research‘s report “How The Home Depot Plans to Capture a $50 Billion Opportunity Amid Economic Uncertainty!” sheds light on Home Depot’s plans for growth amidst challenges. Despite facing economic pressure from tariffs and public criticism over immigration issues, Home Depot remains focused on capturing new opportunities. The company reported a 9.4% increase in sales during the first quarter of fiscal 2025, amounting to $39.9 billion. Although comparable store sales declined slightly, there are strategic initiatives in place to navigate through economic uncertainties and drive future growth.
A look at Home Depot Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using the Smartkarma Smart Scores have provided an optimistic long-term outlook for Home Depot Inc. With a solid score of 4 in Momentum, Home Depot is showing strong performance relative to its peers in terms of stock price movement and market trends. This indicates a positive trajectory for the company’s future growth and profitability.
Additionally, Home Depot received satisfactory scores of 3 in Dividend, Growth, and Resilience, reflecting stable dividend payouts, moderate growth potential, and the ability to weather economic downturns. Although the Value score is lower at 2, suggesting the stock may not be undervalued, the overall Smart Scores indicate a favorable picture for Home Depot Inc. Investors may consider including Home Depot in their long-term investment portfolios based on its promising performance across key factors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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