HD Home Depot posted Q2 revenue of $45.3 billion, up 5% Y/Y and in line with expectations, while adjusted EPS came in at $4.68, missing by a penny. Growth was largely driven by the “Other” segment, reflecting last year’s SRS acquisition.Comparable sales rose 1% (below estimates), with U.S. comps up 1.4%. Smaller-ticket categories such as lighting, gardening, and basic repairs outperformed. Transactions slipped 0.4%, but average ticket size increased 1.4%. Online sales advanced about 12%, with 12 of 16 departments delivering positive comps. Both DIY and Pro demand strengthened, July U.S. comps were above 3%, and management noted that larger projects are being delayed rather than abandoned.
The company reaffirmed its full-year outlook: sales growth of nearly 3%, comps up about 1%, and adjusted EPS down roughly 2%. Management flagged modest price hikes later this year due to tariffs, though roughly half of products are U.S.-sourced, and said supply-chain diversification is being accelerated.
Home Depot continues to emphasize its Pro business, with the SRS integration generating synergies and the pending $4.3 billion GMS acquisition expected to expand its specialty building-products offering. While management sees potential tailwinds if mortgage rates decline, its guidance does not assume a near-term recovery in large, financed remodel projects.
