Home Depot reports revenue growth, says it will hold pricing
On May 20, Home Depot reported results from the first quarter of fiscal 2025, saying sales increased 9.4% from the first quarter of fiscal 2024, totaling $39.9 billion. Comparable sales for the first quarter of fiscal 2025 decreased 0.3%, and comparable sales in the U.S. increased 0.2%, meaning sales gains overall came from new store openings. Net earnings for the first quarter of fiscal 2025 were $3.4 billion, or $3.45 per diluted share, compared with net earnings of $3.6 billion, or $3.63 per diluted share, in the same period of fiscal 2024.
“Our first quarter results were in line with our expectations as we saw continued customer engagement across smaller projects and in our spring events,” said Ted Decker, chair, president and CEO. “We feel great about our store readiness and product assortment as spring continues to break across the country, and 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%
- Capital expenditures of approximately 2.5% of total sales
On pricing
“Because of our scale, the great partnerships we have with our suppliers and productivity that we continue to drive in our business, we intend to generally maintain our current pricing levels across our portfolio,” said Home Depot CFO Richard McPhail in an interview with CNBC on May 20. He added that the retailer’s diverse sourcing will help it endure through any tariff pressures. He said more than half the company’s products are U.S.-made and that no single country outside the U.S. will account for more than 10% of purchases by next year.
Meanwhile, large supplier of tools and power equipment Stanley Black & Decker has reported it will raise prices in the second and third quarters, specifically referencing higher import costs tied to Trump’s new tariffs.
By trying to hold its pricing, Home Depot could be taking a shot at Walmart, which recently said it could be forced to raise prices soon. It could also just be playing it safe to appeal to homeowners and pro contractors feeling the pressure of a tight housing industry.
