Home Depot Reports Higher Sales But Misses Profit Expectations in Q2 2025
Home Depot reported its financial results for the second quarter of fiscal 2025, showing sales of $45.3 billion, which is a 4.9% increase compared to the same period last year. Comparable sales in the U.S. increased by 1.4%.
Despite the rise in sales, Home Depot missed analysts' estimates for both profit and revenue. The company said that more customers are tackling small home improvement projects, but spending on larger renovations remains subdued as high interest rates and a slow housing market continue to affect consumer choices.
Home Depot reaffirmed its full-year guidance, indicating it does not expect major changes in its financial outlook for 2025.
The company's shares fell about 2% in premarket trading after the earnings announcement, as investors reacted to the profit miss and ongoing challenges in the home and garden market.
The stock declined because Home Depot's profit and sales missed analyst expectations, despite an increase in overall sales.
Home Depot is dealing with a slow housing market, high interest rates, and cautious consumer spending, especially on large renovation projects.
No, Home Depot kept its full-year guidance unchanged.
Yes, many customers are still doing smaller home DIY projects, but fewer are spending on big renovations.
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