The Home Depot Sees Q2 Sales Increase; 2025 Guidance Reaffirmed

The Home Depot®, the world's largest home improvement retailer, today reported sales of $45.3 billion for the second quarter of fiscal 2025, an increase of $2.1 billion, or 4.9% from the second quarter of fiscal 2024. Comparable sales for the second quarter of fiscal 2025 increased 1.0%, and comparable sales in the U.S. increased 1.4%. For the second quarter of fiscal 2025, foreign exchange rates negatively impacted total company comparable sales by approximately 40 basis points. 

Net earnings for the second quarter of fiscal 2025 were $4.6 billion, or $4.58 per diluted share, compared with net earnings of $4.6 billion, or $4.60 per diluted share, in the same period of fiscal 2024.

Adjusted(1) diluted earnings per share for the second quarter of fiscal 2025 were $4.68, compared with adjusted diluted earnings per share of $4.67 in the same period of fiscal 2024.

“Our second quarter results were in line with our expectations. The momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects,” said Ted Decker, chair, president and CEO. “Our teams are executing at a high level and we continue to grow market share. I would like to thank our associates for their continued hard work and dedication.” 

Fiscal 2025 Guidance

The company reaffirms its guidance for fiscal 2025, a 52-week year compared to fiscal 2024, a 53-week year. 

• Total sales growth of approximately 2.8%
• Comparable sales growth of approximately 1.0% for the comparable 52-week period
• Approximately 13 new stores
• Gross margin of approximately 33.4%
• Operating margin of approximately 13.0%
• Adjusted(1) operating margin of approximately 13.4%
• Tax rate of approximately 24.5%
• Net interest expense of approximately $2.2 billion
• Diluted earnings-per-share to decline approximately 3% from $14.91 in fiscal 2024
• Adjusted(1) diluted earnings-per-share to decline approximately 2% from $15.24 in fiscal 2024
• Capital expenditures of approximately 2.5% of total sales

(1) The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). As used in this earnings release, adjusted operating income, adjusted operating margin, and adjusted diluted earnings per share are non-GAAP financial measures. Refer to the end of this release for an explanation of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures.

The Home Depot will conduct a conference call today at 9 a.m. ET to discuss information included in this news release and related matters. The conference call will be available in its entirety through a webcast and replay at ir.homedepot.com/events-and-presentations. 

At the end of the second quarter, the company operated a total of 2,353 retail stores and over 800 branches across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs over 470,000 associates. The Home Depot's stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor's 500 index.

Source : The Home Depot

Image : Rob Wilson / shutterstock / 180692453 

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.