The Home Depot®, the leading home improvement retailer globally, announced its financial results for the first quarter of fiscal 2025 on May 20, 2025. The company reported a robust sales figure of $39.9 billion, marking a significant increase of 9.4% compared to the same quarter in fiscal 2024. Despite the growth in sales, the company experienced a slight decline in comparable sales, reflecting broader market trends.

1. Sales Performance Overview

In its latest press release, Home Depot highlighted a mixed bag of sales performance metrics. While total sales surged, comparable sales for the first quarter experienced a marginal decrease of 0.3%. In the U.S. market, comparable sales managed a slight increase of 0.2%. The company noted that foreign exchange rates negatively impacted total company comparable sales by approximately 70 basis points, suggesting that international market dynamics played a role in overall performance.

2. Earnings Results

Net earnings for the first quarter stood at $3.4 billion, equating to $3.45 per diluted share. This is a slight decrease from the net earnings of $3.6 billion or $3.63 per diluted share reported in the same period last year. Adjusted diluted earnings per share were reported at $3.56, down from $3.67 in fiscal 2024. This decrease in earnings reflects the company's ongoing efforts to navigate a challenging economic landscape while maintaining customer engagement.

3. Management Insights

Ted Decker, chair, president, and CEO of Home Depot, expressed optimism regarding the company’s performance, stating, “Our first quarter results were in line with our expectations as we saw continued customer engagement across smaller projects and in our spring events.” He also praised the company’s preparedness for the spring season, emphasizing the importance of store readiness and product assortment. Decker extended gratitude to the company’s associates for their dedication and hard work during this period.

4. Fiscal 2025 Guidance Reaffirmed

In conjunction with the earnings report, Home Depot reaffirmed its guidance for fiscal 2025, a 52-week year, in contrast to the 53-week year of fiscal 2024. Key guidance metrics include:

Total sales growth projected at approximately 2.8%

Comparable sales growth anticipated to be around 1.0%

Plans to open approximately 13 new stores

Expected gross margin of approximately 33.4%

Operating margin forecasted at approximately 13.0%, with an adjusted operating margin of about 13.4%

Tax rate estimated at approximately 24.5%

Net interest expense projected at around $2.2 billion

Diluted earnings per share expected to decline by approximately 3% from $14.91 in fiscal 2024

Adjusted diluted earnings per share expected to decline by approximately 2% from $15.24 in fiscal 2024

Capital expenditures estimated at approximately 2.5% of total sales

5. Company Highlights

As of the end of the first quarter, Home Depot operated a total of 2,350 retail stores and over 790 branches across the United States and select international markets, including Canada and Mexico. The company employs over 470,000 associates, underscoring its substantial workforce and operational reach. Home Depot’s stock is traded on the New York Stock Exchange under the ticker symbol HD and is included in both the Dow Jones Industrial Average and the S&P 500 index.

6. Conclusion

Home Depot’s first quarter results reflect a blend of strong sales growth and challenges with comparable sales performance. The reaffirmation of fiscal 2025 guidance suggests a cautious yet optimistic outlook as the company continues to adapt to changing market conditions. Investors and analysts alike will be keenly observing the company’s performance in the coming quarters, particularly as it navigates seasonal trends and customer engagement strategies.

The Home Depot will host a conference call at 9 a.m. ET to discuss these results and other related matters, providing further insights into the company’s strategy and future outlook.

Original press release