Home Depot's Pro Segment Roars Ahead with Strong Second-Quarter Earnings
The Home Depot reported strong second-quarter earnings, exceeding expectations and outperforming DIY sales. The company's Pro segment saw significant growth, with comparable sales increasing 1.7% in the quarter. Ann-Marie Campbell, Senior Executive Vice President, attributed this success to investments across the company's systems, product assortment, job-lot quantities, delivery capabilities, sales teams, and specialized services.
The Home Depot also benefited from a $730 million tariff refund under the IEEPA, which reduced its cost of goods sold by $685 million. This refund was largely offset by incremental cost pressures related to fuel, energy, and other product input costs, as well as changes in mix due to the GMS acquisition.
The company's SRS segment also performed well, comping above the average with all verticals posting positive comps. Home Depot expects SRS to deliver mid-single-digit percent organic sales growth this year and plans to open 40-50 new SRS branches.