Home Depot comparable sales up 1%
On Aug. 19, Home Depot reported its financial results for Q2 2025, showing sales of $45.3 billion for the quarter, an increase of $2.1 billion, or 4.9% from Q2 2024. Comparable sales for Q2 2025 increased 1.0%, and comparable sales in the U.S. increased 1.4%. The company said foreign exchange rates negatively impacted total company comparable sales by approximately 40 basis points.
Outlook
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%
While total sales increased for the quarter, the retailer missed Wall Street’s earnings expectations for the second straight quarter. Still, the company’s stock rose in early trading on the day.
Consumer spending, tariffs
CFO Richard McPhail told Yahoo Finance that HD is anticipating the interest rate cut that others expect to come soon. Its hope is that a rate cut will turn into lower borrowing costs, including mortgage rates. That would spure home improvement activity, and ease what he sees as consumers’ “deferral mindset” around spending.
He does see bright spots in the retailer’s business today: Transactions over $1,000 rose 2.6% compared to the year-ago quarter. Twelve of its 16 merchandising departments posted sales gains. And year-over-year sales trends improved in each month of the quarter, with comparable sales up 0.3% in May, 0.5% in June and 3.3% in July, he said.
On tariffs, Home Depot said much of its Q2 sales were on inventory not impacted by new tariffs rates, even though it has not stockpiled inventory like some other retailers reportedly have. The retailer said it will raise some prices.
