Home Depot profit falls, but tops expectations in the face of economic uncertainty
Summary
Home Depot's profit dropped compared to last year but still exceeded Wall Street's predictions in the first quarter. The company benefited from strong buying by professional customers and homeowners stocking up on spring supplies, despite economic challenges like rising gas prices and a slow housing market.Key Facts
- Home Depot earned $3.29 billion in profit, or $3.30 per share, in the latest quarter, down from $3.43 billion and $3.45 per share a year ago.
- Adjusted earnings per share were $3.43, slightly above analysts’ expected $3.41.
- Revenue rose to $41.77 billion, beating the forecast of $41.59 billion.
- Sales at stores open at least a year increased by 0.6%, including a 0.4% rise in U.S. stores.
- The number of customer transactions fell by 1.3%, but average spending per customer went up to $92.76 from $90.71.
- Home Depot expects total sales growth of 2.5% to 4.5% and comparable sales growth of flat to 2% for fiscal 2026.
- Economic factors affecting sales include a slow housing market and a 28% rise in gasoline prices over the past year.
- The housing market has been weak since 2022 due to higher mortgage rates and affordability issues.
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