Key Takeaways
Home Depot Inc. (NYSE: HD) reported first-quarter sales that narrowly beat analyst estimates and reaffirmed its full-year outlook, signaling steady demand from home-improvement shoppers even in a muted housing market.
"The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure,” Chief Executive Officer Ted Decker said in a statement.
Shares rose more than 1 percent in pre-market trading. The results suggest the world’s largest home-improvement retailer is weathering high borrowing costs and a stagnant housing market, as customers continue to spend on smaller-scale projects and repairs.
For the three months ended May 3, revenue climbed to $41.77 billion, topping Wall Street’s expectation for $41.59 billion. Sales at stores open at least a year, a key gauge of a retailer’s health, rose 0.6 percent, in line with analyst estimates. The company’s earnings of $3.43 per share, excluding some items, also beat expectations.
The resilience comes even as the U.S. housing market remains sluggish. Sales of previously occupied homes were nearly flat in April, according to the National Association of Realtors, as mortgage rates near multi-decade highs deter potential buyers. Home Depot saw a 1.3 percent decline in customer transactions during the quarter, but this was offset by a higher average receipt of $92.76.
Home Depot maintained its forecast for fiscal 2026, projecting total sales growth of about 2.5 percent to 4.5 percent and comparable sales growth to be about flat to up 2 percent.
The reaffirmed guidance suggests management is confident it can navigate the current economic environment, where consumers are battling inflation and higher gas prices. Investors will watch the company’s professional and DIY sales mix in the coming quarters for signs of changing consumer behavior.
This article is for informational purposes only and does not constitute investment advice.
