Home Depot Q1 Fiscal 2025 Results

The Home Depot, the world's largest home improvement retailer, has released its financial results for the first quarter of fiscal 2025. The company reported a 9.4% increase in sales compared to the same period last year, reaching $39.9 billion. Despite this growth, net earnings saw a slight decline, with diluted earnings per share (EPS) falling to $3.45 from $3.63 in the previous year.

Financial Highlights

For the first quarter of fiscal 2025, Home Depot's net sales were $39.9 billion, up from $36.4 billion in the first quarter of fiscal 2024. However, comparable sales decreased by 0.3%, with U.S. comparable sales showing a modest increase of 0.2%. The company faced a negative impact of approximately 70 basis points on total company comparable sales due to foreign exchange rates.

Net earnings for the quarter were $3.4 billion, or $3.45 per diluted share, compared to $3.6 billion, or $3.63 per diluted share, in the same period last year. Adjusted diluted EPS was $3.56, down from $3.67 in the first quarter of fiscal 2024.

Business and Operational Highlights

Home Depot saw continued customer engagement in smaller projects and spring events, according to Ted Decker, the company's chair, president, and CEO. The company operated 2,350 retail stores and over 790 branches across various regions, including all 50 U.S. states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico. Home Depot employs over 470,000 associates.

Strategic Initiatives and Corporate Developments

The company reaffirmed its guidance for fiscal 2025, which includes total sales growth of approximately 2.8% and comparable sales growth of approximately 1.0% for the comparable 52-week period. Home Depot plans to open approximately 13 new stores and expects a gross margin of around 33.4% and an operating margin of approximately 13.0%. The company also anticipates capital expenditures of approximately 2.5% of total sales.

Management's Perspective

Ted Decker expressed satisfaction with the company's performance, highlighting the readiness of stores and product assortment as key factors in meeting customer needs during the spring season. He also thanked the associates for their hard work and dedication.

Future Outlook

Home Depot's guidance for fiscal 2025 includes a slight decline in diluted EPS by approximately 3% from $14.91 in fiscal 2024, and a 2% decline in adjusted diluted EPS from $15.24 in fiscal 2024. The company expects a tax rate of approximately 24.5% and net interest expense of around $2.2 billion.

SEC Filing: HOME DEPOT, INC. [ HD ] - 8-K - May. 20, 2025