Home Depot Sales Rise 5.7% as Housing Market Remains Stalled

Home Depot's second-quarter sales rose by 5.7%, driven by same-store sales growth of 1.7% and the addition of new distribution branches through its acquisition of Gypsum Management & Supply.

The company's adjusted operating margin was 14.7%, down 10 basis points from last year, due to higher costs partially offset by $685 million in tariff refunds.

Despite a tough housing market, Home Depot has managed to capture increased market share by merchandising for both DIY and pro customers.

The company's investments in brand awareness, including express delivery and an artificial intelligence tool called Magic Apron, are supporting ticket growth of 2.8% through pricing strategies and leading to customer stickiness.