Home Depot Reports Strong Q2 2025 Earnings, Reaffirms Full-Year Guidance Amid Economic Uncertainty
Home Depot, the world’s largest home improvement retailer, announced its second quarter fiscal 2025 results with robust sales growth despite ongoing economic challenges.
For Q2 2025, Home Depot reported sales of $45.3 billion, marking a 4.9% increase compared to the second quarter of fiscal 2024. Comparable sales rose 1.0%, underscored by a 1.4% increase in U.S. comparable sales. The increase came despite a roughly 40 basis points negative impact from foreign exchange rates.
Net earnings were $4.6 billion, or $4.58 per diluted share, relatively steady against the previous year. Adjusted diluted earnings per share were $4.68, nearly unchanged from the prior year.
CEO Ted Decker noted that momentum was driven by customers engaging more broadly in smaller home improvement projects. However, CFO Richard McPhail highlighted that larger projects remain on hold due to elevated interest rates and economic uncertainty, describing a homeowner ‘deferral mindset’ that began mid-2023.
Home Depot reaffirmed its full-year fiscal 2025 guidance, expecting total sales growth of approximately 2.8%, comparable sales growth of about 1%, and plans to open approximately 13 new stores. The company anticipates a slight decline in diluted earnings per share by about 3%.
Strategically, Home Depot is emphasizing professional sales channels, bolstered by its recent acquisition of SRS Distribution and an upcoming acquisition of GMS, aiming to grow market share despite consumer hesitation.
Despite slightly missing some Wall Street earnings and revenue expectations, Home Depot’s stock remains resilient with positive analyst outlooks as the company navigates a complex economic environment.
