Home Depot Reports Q2 2025 Revenue and Reaffirms Outlook

The Home Depot (HD.US) announced second quarter fiscal 2025 results, with sales reaching $45.3 billion, an increase of 4.9% from the prior year. Adjusted diluted earnings per share were $4.68, marking a 0.2% increase compared to the same period in fiscal 2024. This performance was in line with the company's expectations.

Sales Performance and Business Drivers

Total sales for the second quarter of fiscal 2025 were $45.3 billion, up from $43.2 billion in the second quarter of fiscal 2024. Comparable sales for the quarter increased 1.0%, with U.S. comparable sales growing by 1.4%. Foreign exchange rates had a negative impact of approximately 40 basis points on total company comparable sales.

Customer transactions decreased by 0.9% to 446.8 million, but the average ticket increased by 1.2% to $90.01. The company noted that the momentum from the second half of the previous year continued, driven by customers engaging more broadly in smaller home improvement projects. Management highlighted strong execution from their teams and continued market share growth.

Management Outlook Reaffirmed

The Home Depot reaffirmed its guidance for fiscal 2025. The company expects total sales growth of approximately 2.8% and comparable sales growth of approximately 1.0% for the comparable 52-week period. The guidance also projects approximately 13 new stores, a gross margin of approximately 33.4%, and an operating margin of approximately 13.0%.

Adjusted diluted earnings per share are anticipated to decline approximately 2% from $15.24 in fiscal 2024. The company also provided guidance for adjusted operating margin of approximately 13.4% and capital expenditures of approximately 2.5% of total sales, along with a tax rate of approximately 24.5% and net interest expense of approximately $2.2 billion.