Home Depot Q2 Profit Down, Misses Street, But Comps Rise; Backs FY25 Outlook

(RTTNews) - Home Depot Inc. reported Tuesday slightly lower profit in its second quarter, despite higher sales and comparable sales. Meanwhile, Adjusted earnings per share and top line missed market estimates. Further, the company maintained its outlook for fiscal 2025 earnings and sales growth.

In the pre-market activity on the NYSE, Home Depot shares were losing around 2 percent to trade at $386.70.

Ted Decker, chair, president and CEO, said, "Our second quarter results were in line with our expectations. The momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects. Our teams are executing at a high level and we continue to grow market share."

For fiscal 2025, a 52-week year, the company continues to project earnings per share to decline around 3 percent from $14.91 in fiscal 2024, a 53-week year. Adjusted earnings per share are still expected to drop around 2 percent from $15.24 last year. Operating margin is still expected to be around 13 percent, and adjusted operating margin around 13.4 percent.

Further, the company continues to expect total sales growth of approximately 2.8 percent from last year's $159.5 billion, and comparable sales growth of approximately 1.0 percent, compared to a drop of 1.8 percent a year earlier.

The Wall Street analysts on average expect the company to earn $15.01 per share on sales of $164.35 billion. Analysts' estimates typically exclude special items.

In the second quarter, net earnings edged down 0.2 percent to $4.551 billion from $4.561 billion last year. Earnings per share were $4.58, down 0.4 percent from prior year's $4.60.

Adjusted earnings per share were $4.68, compared to $4.67 in the same period of fiscal 2024. Analysts expected earnings of $4.69 per share for the quarter.

Home Depot reported net sales of $45.28 billion, an increase of 4.9 percent from $43.18 billion a year ago. The Street was looking for sales of $45.31 billion.

Comparable sales for the second quarter increased 1.0 percent, compared to a 3.3 percent drop last year. Comparable sales in the U.S. increased 1.4 percent.

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