Home Depot, Inc. (HD) has shown resilience in a tough home improvement market, driven by strong demand from professional customers and digital initiatives. In the second quarter of fiscal 2026, comparable sales (comps) rose 1.7%, with U.S. comps up 1.3%. The company saw sequential growth, with comps accelerating from 1.2% in May to 2.3% in July. Thirteen of its 16 merchandising departments reported positive comps, highlighting sustained demand for repair and maintenance projects.
Professional customers remained a key growth driver, outperforming DIY customers. Sales through digital platforms surged 11%, marking the fifth straight quarter of double-digit growth. Investments in faster delivery, product availability, and interconnected shopping capabilities are enhancing customer engagement and market share gains. However, elevated housing affordability pressures and consumer uncertainty continue to constrain larger renovation projects, with comparable transactions declining 1%.
Home Depot reaffirmed its fiscal 2026 comps guidance of flat to 2% growth. While continued Pro momentum and digital investments could support sales performance, persistent housing market weakness may limit stronger comps recovery. Meanwhile, Lowe’s Companies Inc. (LOW) reported 0.2% comps growth in the same quarter, supported by Pro, online, and Home Services businesses. Management expects roughly flat comps for fiscal 2026 due to housing market uncertainty.
Williams-Sonoma Inc. (WSM) delivered 6.2% comps growth, accelerating from 4.8% in the preceding quarter. Strength across its brands and 14.5% B2B growth supported momentum. Management raised its fiscal 2026 comparable brand revenue growth outlook to 4-6.5%. Shares of Home Depot have lost 5.6% in the past year, compared with the industry’s decline of 8.2%. The company trades at a forward price-to-earnings ratio of 22.41X, higher than the industry average of 19.98X.