Home Depot’s Financial Results Miss Wall Street Expectations

Retailer The Home Depot (HD) has reported financial results for this year’s second quarter that missed the consensus expectations of Wall Street. The Atlanta-based home improvement retailer announced earnings per share (EPS) of $4.68 U.S., which was below the $4.71 U.S. expected on Wall Street. Revenue in the April through June period totaled $45.28 billion U.S., which missed the $45.36 billion U.S. expected among analysts. Sales were up 5% from a year earlier.This was the first time that Home Depot’s quarterly results came up short on both earnings and revenue since May 2014, or more than a decade ago. In terms of guidance, management reiterated that it expects full-year sales to grow by 2.8% and comparable sales to rise about 1%. In its earnings, Home Depot said that it is still waiting for a pick-up in home improvement activity that may come with lower mortgage rates and improved consumer sentiment. The retail chain said it is seeing encouraging signs, with big-ticket transactions, which the company defines as those over $1,000 U.S., increasing 2.6% compared to a year ago. Also, year-over-year sales trends improved in each month of the second quarter, with comparable sales up 0.3% in May and 0.5% in June.Also, Home Depot said its full-year guidance doesn’t factor in potential rate cuts by the U.S. Federal Reserve, which could spur borrowing for homebuying and larger projects. Additionally, Home Depot continues to focus on professional contractors for much of its business rather than do-it-yourself homeowners. In 2024, the company acquired SRS Distribution, which sells supplies to roofing, landscaping and pool professionals, for $18.25 billion U.S. This June, Home Depot announced that it is buying GMS, a specialty building products distributor, for $4.3 billion U.S. The GMS deal is expected to close in January 2026.About 55% of Home Depot’s sales now come from professional contractors and about 45% come from do-it-yourself customers. HD stock is flat on the year and trading at $389 U.S. per share after its latest earnings release.