Home Depot delivered mixed third-quarter results, falling short of earnings expectations and lowering its full-year forecast as consumer uncertainty and weak storm activity weighed on demand.
The home-improvement giant reported net earnings of $3.6 billion, or $3.78 per share, for the quarter ended 2 November.
That was down 1.3% from a year ago and below Wall Street’s projected $3.83. Revenue met expectations, rising 3% to $41.4 billion, including roughly $900 million from the recently completed GMS Inc. acquisition, which contributed eight weeks of sales.
Comparable sales rose 0.2%, with U.S. comps up 0.1% year over year.
“Our results missed our expectations primarily due to the lack of storms in the third quarter, which resulted in greater than expected pressure in certain categories,” said chair, president and CEO Ted Decker.
“While underlying demand remained relatively stable sequentially, an expected increase in demand did not materialize. We believe that consumer uncertainty and continued pressure in housing are disproportionately impacting home improvement demand.”
Related Story
Home Depot cut its fiscal 2025 outlook to reflect the softer quarter, ongoing housing and consumer pressure, reduced storm-related demand and the inclusion of GMS revenue.
The company now expects adjusted EPS to fall about 5%, versus a prior forecast for a 2% decline. It also expects to end the year with 12 new stores, down from a previous plan for 13.
Fitch Ratings senior director David Silverman said the results reflect a more cautious consumer and broadly slowing retail spending.
“Fitch believes Home Depot has the appropriate scale, operating strategy and business mix to successfully navigate the current environment,” he said, noting its ability to offset tariff impacts and its growing mix of pro and repair-oriented business.
Home Depot ended the quarter with 2,356 retail stores and more than 1,200 SRS locations across the U.S., Canada and Mexico.
Click here to sign up to Retail Gazette‘s free daily email newsletter
