The Home Depot®, the world's largest home improvement retailer, has posted steady second quarter results for fiscal 2025, underpinned by consumer demand for smaller-scale renovation projects.
© The Home Depot
The company reported sales of $45.3 billion for the quarter, an increase of $2.1 billion, or 4.9%, compared with the same period last year. Comparable sales rose by 1.0%, while U.S. comparable sales increased by 1.4%. Foreign exchange rates, however, negatively impacted total company comparable sales by approximately 40 basis points.
Net earnings for the quarter were $4.6 billion, or $4.58 per diluted share, broadly unchanged from $4.6 billion, or $4.60 per diluted share, a year earlier. Adjusted diluted earnings per share edged higher to $4.68, compared with $4.67 in fiscal 2024.
Commenting on the performance, Ted Decker, chair, president and CEO, said: "Our second quarter results were in line with our expectations. The momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects. Our teams are executing at a high level and we continue to grow market share. I would like to thank our associates for their continued hard work and dedication."
Looking ahead, The Home Depot reaffirmed its fiscal 2025 guidance. The company expects total sales growth of approximately 2.8% and comparable sales growth of around 1.0% for the 52-week year, compared with fiscal 2024's 53-week year. It plans to open approximately 13 new stores and is forecasting a gross margin of 33.4% and an operating margin of 13.0%, with an adjusted operating margin of 13.4%.
Other key projections include a tax rate of approximately 24.5%, net interest expense of around $2.2 billion, and capital expenditures equivalent to 2.5% of total sales. Diluted earnings-per-share are expected to decline by roughly 3% from $14.91 in fiscal 2024, while adjusted diluted earnings-per-share are forecast to fall by approximately 2% from $15.24.
At the close of the second quarter, The Home Depot operated 2,353 retail stores and over 800 branches across the United States, Canada and Mexico. The company employs more than 470,000 associates and is listed on the New York Stock Exchange under the ticker HD. Its shares are included in both the Dow Jones Industrial Average and the S&P 500 index.
The company will hold a conference call to discuss the results and outlook further, with a webcast and replay available at ir.homedepot.com/events-and-presentations.
More information:
The Home Depot
www.corporate.homedepot.com
