The Home Depot reported its fiscal first-quarter results on May 20, 2025, with net income of $3.43 billion, or $3.45 per share, missing Wall Street's earnings expectations for the first time since May 2020. However, the company beat sales estimates, with total sales growing approximately 9% year over year to $39.9 billion.
The sales growth was significantly bolstered by the SRS Distribution business, which contributed $2.6 billion to the year-over-year gain. Comparable sales for the quarter dropped 0.3% across the company, though U.S. comparable sales saw a slight increase of 0.2%.
Home Depot reaffirmed its full-year fiscal 2025 guidance, projecting total sales growth of approximately 2.8% and comparable sales growth of about 1%. CEO Ted Decker noted that stubbornly high interest and mortgage rates continue to dampen demand for larger, discretionary remodeling projects, while customers remain engaged in smaller projects and spring-related purchases.
Pro customer sales continued to outperform DIY sales, showing strength in Pro-heavy categories. The gross profit margin decreased slightly to 33.8% from 34.1% in the prior year, primarily due to the lower gross margin rate of SRS, partially offset by improvements in shrink and supply chain productivity. Diluted earnings per share fell to $3.45 from $3.63 in the prior year.
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