Home Depot Sales Rise 5.7% in Q2, Driven by Pro Additions and Acquisitions
The Home Depot Inc reported a 5.7% increase in second-quarter sales, driven by a 1.7% rise in same-store sales growth and the Gypsum Management & Supply acquisition. The company's adjusted operating margin decreased by 10 basis points to 14.7%, mainly due to higher costs partially offset by $685 million in tariff refunds. This performance was attributed to Home Depot's efforts to expand its Pro services, which have proven resilient despite a challenging housing market.
The company cited the addition of new distribution branches and its acquisition of Gypsum Management & Supply as key contributors to the sales growth. The Pro segment continues to show strength, with sales increasing by 3% over the same period last year. However, the overall DIY market remains impacted by a tough housing market, which has constrained consumer spending on home improvement projects.
The company's financial performance highlights the importance of its strategic initiatives aimed at boosting sales and profitability in a stagnant housing market.