Home Depot’s revenue and earnings fell last quarter amid a slump in home sales, though the company beat estimates.
Revenue was down 3.8% year-over-year to US$38.20 billion in the three months to February 1, above LSEG estimates of $38.12 billion. Earnings per share were $2.72, dropping from $3.13 but passing estimates of $2.54.
“Throughout fiscal 2025, our teams did an incredible job engaging with our customers and growing market share, and I would like to thank them for their hard work and dedication," said chair, president, and CEO Ted Decker.
"For the fourth quarter, our results were largely in-line with our expectations, reflecting the lack of storm activity in the third quarter and ongoing consumer uncertainty and pressure in housing. Adjusting for storms, underlying demand was relatively stable throughout the year.”
Gross profit declined 4.4% to $12.47 billion. Operating income was down 14.4% to $3.85 billion.
The company reported an 8.5% decrease in customer transactions for the quarter, although the average ticket rose 2.4% to $91.28. Home Depot said the ticket increases were largely to U.S. tariff policies.
For fiscal 2026, Home Depot projects sales growth of 2.5-4.5%. Adjusted earnings per share increases would range from flat to a 4% rise.
Its earnings come amid a slump in home sales, driven by flagging inventory. New U.S. single-family home sales fell 1.7% in December, and pending sales were down 0.8% in January.
The U.S. House of Representatives has passed a bill to lift housing supply by lowering regulatory barriers, which will now be considered by the Senate. Mortgage rates have also continued to drop, with 30-year fixed rates matching their lowest point since 2022 this week.
Home Depot (NYSE: HD) shares closed 2% higher at $384.48, and rose a further 0.2% after-hours. Its market capitalisation is $382.12 billion.
