Home Depot Sales Get Boost from Smaller Projects Amid Slowing Housing Market

Home Depot reported improved sales in its second quarter due to customers focusing on smaller projects during the summer months. Revenue increased to $47.86 billion from $45.28 billion, beating Wall Street's expectations of $47.24 billion.

The company saw a 1.7% increase in globally comparable store sales and a 1.3% rise in U.S. comparable store sales. Customer transactions fell by 1%, but the average spend per transaction rose to $92.50 from $90.01 last year, according to Chief Financial Officer Richard McPhail.

GlobalData's Neil Saunders noted that while smaller projects are up 1.5% over the prior year, bigger-ticket projects have declined by 2.1%. This is attributed to concerns around financing and a lack of moving activity, which are major drags on the bigger-ticket segment.

Home Depot's outlook for fiscal 2026 remains unchanged at 2.5-4.5% sales growth and flat to up 2% comparable sales. The company also announced the launch of express delivery nationwide, with orders delivered within three hours or less for a small flat fee.