#USA #Atlanta #retail #Fiscal Year #Home Depot

The Home Depot's Financial Performance in Q2 Fiscal Year 2025

The Home Depot®, the leading global home improvement retailer, has unveiled its financial results for the second quarter of Fiscal Year 2025, ending August 3, 2025. The company recorded impressive sales figures amounting to $45.3 billion, marking a significant 4.9% increase compared to the same quarter in the previous fiscal year. This year-on-year growth signifies the continued strength and resilience of the company in a competitive retail environment.

For the second quarter of the fiscal year 2025, comparable sales inched up by 1.0%, while comparable sales in the United States increased slightly more by 1.4%. Notably, however, the impact of foreign exchange rates had a slight negative effect, reducing overall comparable sales by approximately 40 basis points. This highlights the importance of currency fluctuations as a factor in multinational operations.

The company reported net earnings of $4.6 billion ($4.58 on a diluted per-share basis), which reflects a marginal decrease from $4.60 per diluted share in the same quarter of FY 2024. Adjusted diluted earnings per share stood at $4.68, slightly up from $4.67 last year, indicating the company’s solid operational performance despite slightly higher costs.

Remarks from Leadership

Ted Decker, Chairman, President, and CEO of The Home Depot, commented on the quarterly performance: "Our Q2 results align with our expectations. The momentum from the latter half of last year has carried forward into the first half of the current year, driven by strong customer engagement in various home improvement projects. I would like to extend my gratitude to our associates for their dedication and hard work, which continues to drive our market share expansion."

Fiscal 2025 Guidance Reaffirmed

In conjunction with the release of the second quarter results, The Home Depot reiterated its guidance for the entirety of Fiscal Year 2025, outlining expectations for a 2.8% increase in total sales and a comparable sales increase of about 1.0% for the 52-week period. The company anticipates opening approximately 13 new stores during this financial year, plus a gross margin of 33.4% and an operating margin of 13.0%. However, diluted earnings per share are projected to decline by roughly 3% from the $14.91 reported in FY 2024.

Additionally, The Home Depot expects net interest expenses of around $2.2 billion and capital expenditures to constitute about 2.5% of total sales. The effective tax rate is forecasted to be approximately 24.5%, ensuring transparency in long-term planning for shareholders.

Store Operations and Employment

As of the end of the second quarter, The Home Depot operated 2,353 retail stores in various locations across the USA, including Puerto Rico, the Virgin Islands, and 10 Canadian provinces, as well as Mexico. The company employs over 470,000 associates, underscoring its role as a significant employer in the retail sector. With shares listed on the New York Stock Exchange (NYSE: HD) and included in the Dow Jones Industrial Average and S&P 500 index, The Home Depot remains a key player in the market.

The company will host a conference call at 9:00 AM EST to further discuss the results and the insights shared in this press release. Stakeholders and interested parties are encouraged to tune in online.

In summary, The Home Depot’s strong Q2 results reflect a positive trend in the home improvement retail sector amid continuous investment in store growth and employee engagement, providing a robust outlook as the company moves forward into the latter half of FY 2025.