HD Posts In-Line Results, Beats on Comps

Home Depot reported second-quarter fiscal 2025 results that narrowly missed analyst expectations on both revenue and earnings per share (EPS). Adjusted diluted EPS came in at $4.68, 0.31% below the consensus estimate of $4.69, while net sales totaled $45.28 billion, falling short of the estimated $45.31 billion by 0.07%. The company's top line benefited from a 1.0% increase in comparable sales and a 1.4% rise in average ticket price to $90.01.

The Home Depot attributed the improvement in comparable sales to continued customer engagement in smaller home improvement projects, which represented a reversal of last year's -3.3% comp decline. The company also noted market share gains and a positive trend in consumer demand.

Despite missing expectations on the bottom line, Home Depot reaffirmed its full-year guidance for fiscal 2025: total sales growth of approximately 2.8%, comparable sales growth of about 1.0%, gross margin of around 33.4%, operating margin of roughly 13.0% (adjusted ~13.4%), and diluted EPS to decline by about 3% from $14.91 in fiscal 2024.

Home Depot CEO noted the 'momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects.' The company's reaffirmation of its guidance suggests confidence in the current trajectory of consumer demand and market share growth.