Home Depot Shows Resilience Amid Weak Housing Market

The Home Depot Inc. (HD) has continued to demonstrate defensive qualities despite a challenging housing market. Housing affordability and consumer uncertainty have been major hurdles, particularly for larger home-improvement projects. Management noted that housing turnover has remained low for about four years, with no clear signs of improvement.

In the fiscal second quarter, Home Depot reported resilient results, with sales increasing 5.7% year over year to $47.9 billion, and comparable sales up 1.7%. Demand was broad-based, with 13 of 16 merchandising departments posting positive comps. Customers continued to focus on smaller repair and maintenance projects, which helped offset weaker demand for larger discretionary categories. Big-ticket transactions above $1,000 rose 2.4%, though management acknowledged ongoing pressure on larger projects.

The Pro business has been a key source of resilience, with Pro comps outperforming DIY comps due to investments in product assortment, delivery, sales capabilities, and specialized services. Digital sales also surged, with online comparable sales rising 11% year over year for the fifth consecutive quarter of double-digit growth.

Home Depot is not entirely shielded from the weak housing cycle, but its repair-and-maintenance exposure, Pro strength, market-share gains, and omnichannel investments have made the business relatively defensive. The company reaffirmed its fiscal 2026 guidance of flat to 2% comparable-sales growth, suggesting it can navigate subdued housing demand while preparing for eventual recovery.