Home Depot Earnings Report Shows Signs of Life Amid Housing Market Struggles

Home Depot's second-quarter earnings report provided some respite in a challenging macro environment. The housing market has struggled, but Home Depot's solid results showed progress.

The company reported its strongest comparable sales growth in nearly four years, with same-store sales up 1.7% globally and 1.3% in the U.S. This was after the pandemic-driven boom in home-improvement spending.

Overall revenue rose 5.7% to $47.86 billion, beating estimates of $47.23 billion. Gross margin improved to 33.7%, but this was mainly due to a benefit from the IEEPA tariff refund.

The company's adjusted earnings per share rose from $4.68 to $4.92, exceeding the consensus at $4.73. Home Depot saw success in the DIY segment and online sales, with digital comps up 11%, marking the fifth straight quarter of double-digit gains in that channel.