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House Depot on Tuesday posted a roughly 4% quarterly gross sales decline, as a sluggish actual property market and selective spending by householders continued to weigh on dwelling enchancment demand.
The corporate additionally caught by the present fiscal yr forecast that it shared in December at an investor day. It mentioned it expects full-year whole gross sales progress to vary between about 2.5% and 4.5% and adjusted earnings per share to be between roughly flat and up 4% from $14.69 within the prior fiscal yr. It expects full-year comparable gross sales progress, which takes out one-time elements like retailer openings and closures, to vary from flat to up 2%.
Regardless of the fourth-quarter gross sales decline, House Depot topped Wall Road’s income and earnings expectations for that interval.
In an interview with CNBC, Chief Monetary Officer Richard McPhail mentioned U.S. customers and the corporate have “been in a frozen housing atmosphere for 3 years” – and there hasn’t been a significant thaw.
“What we have seen as an added strain over the last yr has been this improve in client uncertainty, a gradual decline in client confidence,” he mentioned. “And so these are indicators we’re watching.”
He mentioned prospects have informed the corporate that they’re involved about housing affordability and job losses, dynamics that coloured House Depot’s outlook for the yr.
This is what House Depot reported for the fiscal fourth quarter of 2025 in contrast with Wall Road’s estimates, in line with a survey of analysts by LSEG:
- Earnings per share: $2.72 adjusted vs. $2.54 anticipated
- Income: $38.20 billion vs. $38.12 billion anticipated
House Depot beat earnings expectations after lacking estimates three quarters in a row.
Greater rates of interest, decrease housing turnover and financial uncertainty have challenged the corporate, as householders delay the pricier initiatives sometimes spurred by shopping for or promoting a house.
Because the Atlanta-based retailer waits for enterprise to choose up, it laid off 800 staff and introduced a five-day per week return-to-office coverage in late January.
But some traders anticipate an inflection level might be coming for House Depot, as mortgage charges reasonable barely. The typical charge on a 30-year mounted mortgage fell to five.99% on Monday, matching its lowest degree since 2022, in line with Mortgage Information Day by day.
House Depot’s largest promoting season, springtime, can be forward.
McPhail mentioned House Depot’s enterprise was comparatively secure all year long, together with within the fourth quarter, when adjusting for storms. He mentioned the corporate is gaining market share, even because the sector lags.
Within the three-month interval that ended Feb. 1, House Depot’s internet earnings fell to $2.57 billion, or $2.58 per share, from $3.0 billion, or $3.02 per share, within the year-ago interval.
Income dropped from $39.70 billion within the year-ago interval. The corporate mentioned some decline was as a result of most up-to-date fiscal yr 2025 having one fewer week. The extra week within the 2024 fiscal yr contributed $2.5 billion in gross sales.
Comparable gross sales, an business metric additionally known as same-store gross sales, elevated 0.4% within the fiscal fourth quarter throughout the enterprise and 0.3% within the U.S.
Retailer transactions within the quarter throughout House Depot’s web site and shops dropped by 1.6% yr over yr, however common ticket rose 2.4% yr over yr. Large-ticket purchases, which the corporate defines as these over $1,000, had been 1.3% greater than the year-ago interval.
A few of these bigger orders could replicate greater costs. McPhail mentioned House Depot has had “modest” value will increase, although he declined to say which objects and classes now price prospects extra.
Greater tariffs have been one of many forces driving value hikes at retailers, together with House Depot. Corporations now face a brand new panorama for import duties after the Supreme Courtroom on Friday dominated that a few of the Trump administration’s tariffs had been unlawful. Quickly after the ruling, President Donald Trump mentioned at a press convention that he would pursue various tariffs and proposed an throughout the board international tariff that he has since set at 15%.
He mentioned House Depot is “nonetheless in the course of our evaluation” after the Supreme Courtroom ruling and newest proposed tariffs.
“Not all the data is out proper now. Not all of the language is remaining round what was introduced,” he mentioned. He added that House Depot is “as properly positioned as anybody to know any impacts and handle by way of them.”
Greater than half of what House Depot sells comes from the U.S., in line with the corporate. It is diversifying its imports, in order that no single nation exterior of the U.S. represents greater than 10% of the corporate’s purchases, McPhail mentioned.
Although do-it-yourself patrons have reduce, the corporate nonetheless has a extra secure enterprise phase.
A rising enterprise from dwelling professionals, comparable to contractors and roofers, has boosted House Depot’s general enterprise. It acquired SRS Distribution, an organization that sells provides to roofing, landscaping and pool professionals, for $18.25 billion final yr in 2024 and purchased GMS, a specialty constructing merchandise distributor, for about $4.3 billion final yr.
Professional gross sales had been stronger than do-it-yourself gross sales through the fourth quarter, McPhail mentioned, although he declined to share particular figures.
House Depot opened 12 shops in fiscal 2025 and plans to open 15 extra shops this fiscal yr.
The corporate additionally introduced on Tuesday that its board of administrators elevated its quarterly dividend by 1.3%, or 3 cents, to $2.33 per share. Will probably be payable subsequent month.
As of Monday’s shut, House Depot shares are down about 2% over the previous yr, however up about 10% yr up to now. That compares to the S&P 500’s practically 14% positive aspects over the previous yr and its roughly flat efficiency yr up to now.
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