Home Depot Q2 sales rise 5.7% to $47.9 bln, beat estimates
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Home Depot reported second-quarter sales of $47.86 billion on Tuesday, up 5.7% from a year earlier and above the $47.27 billion expected by analysts, according to LSEG data. The company maintained its annual sales and profit targets, saying tariff refunds would offset higher fuel prices. The results came even as high interest rates pushed consumers toward smaller repair and maintenance projects.
Key Facts
- Home Depot second-quarter sales rose 5.7% to $47.86 billion, above the LSEG consensus of $47.27 billion.
- Home Depot comparable sales rose 1.3% in the United States and 1.7% overall, the best overall gain since the third quarter of 2022.
- S&P 500 second-quarter earnings are on pace to rise 50% year over year, the highest growth rate since 2021, according to FactSet.
- Klarna stock plunged after the company trimmed guidance, according to Yahoo Finance.
Home Depot Results
Second-quarter sales rose 5.7% to $47.86 billion, above the $47.27 billion LSEG consensus. Comparable sales rose 1.3% in the United States and 1.7% overall, the best overall gain since the third quarter of 2022. Home Depot maintained its annual sales and profit targets. The company expects tariff refunds to offset the impact of higher fuel prices.
Consumer Shift to Smaller Projects
High interest rates have pushed U.S. households toward repair and maintenance work instead of large renovations such as kitchen remodels. Home Depot's average basket size is about $90, with products ranging from roughly $5 to more than $5,000. Elevated mortgage rates and rising home prices have stalled a housing market recovery, hurting demand from homebuilders for big-ticket projects. Home Depot results showed consumers continued to spend, albeit on smaller projects, as geopolitical concerns and inflation weigh on U.S. households.
Broader Retail Earnings
Walmart, Target, and Lowe's are among other big box retailers reporting earnings this week. For the S&P 500, second-quarter earnings are on pace to rise 50% year over year, the highest growth rate since 2021, according to FactSet. Bank of America strategists said artificial intelligence has been the growth engine of that broad-based earnings growth. Klarna stock plunged after the company trimmed guidance, according to Yahoo Finance.
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Home Depot Q2 sales rise 5.7% to $47.9 bln, beat estimates
