Home Depot Beats Q2 Estimates, Reaffirms Guidance Amid Housing Freeze

The Home Depot beat Q2 estimates and reaffirmed its full-year guidance on August 18. The company reported revenue of $47.9 billion, a 5.7% increase from last year. Comparable sales grew 1.7%, with 13 out of 16 merchandising departments posting positive comps.

The contrast to Lowe's is stark. While Home Depot's comparable sales rose 1.7%, Lowe's came in at just 0.2%. The difference can be attributed to the strength of Home Depot's Pro and specialty-distribution business, as well as its online sales growth of 11%.

The stock initially rose about 2% on the print but quickly gave back those gains. By August 26, it had returned to $334.85, down from its post-earnings high of roughly $344. The company's CFO, Richard McPhail, noted that housing turnover has never been lower as a percentage of the housing stock and hinted at potential future growth.