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Springtime. Time for all those home improvement projects that had to wait for warmer weather. And time for…Home Depot’s first earnings report for fiscal 2025. How very convenient.
In Q1 2025, Home Depot posted sales of $39.9 billion, a 9.4% increase from the same quarter last year.
Comparable sales, or what existing stores sold, fell 0.3% overall, while comparable sales in the US climbed a slim 0.2%.
“This backs our previous view that the US home improvement market has likely reached the nadir of its decline after a very sluggish period,” Neil Saunders, managing director of GlobalData, told CFO Brew over email. “However, it is also clear that there is not yet sufficient momentum to power up the hill at the other side of the trough. As such, it is likely that Home Depot and its rivals in the sector will linger in the valley of low growth for most of this year.”
Home Depot reaffirmed its fiscal 2025 guidance, anticipating total sales would grow by 2.8% and comparable sales would climb 1%.
That forecast takes into account that the US and China entered a temporary agreement to lower reciprocal import tariffs. Notably, Home Depot’s finance chief told CNBC the retailer has no intention of raising prices due to tariffs.
“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,” CFO Richard McPhail told the outlet.
Over half of what Home Depot sells is made in the US, he told CNBC, noting that the company has worked for several years with its suppliers to diversify the sources of its imports. By next spring, McPhail said, no individual country outside the US will comprise over 10% of Home Depot’s purchases.
Seems like the company has been undertaking some improvement projects of its own.