#USA #Atlanta #Fiscal 2025 #Home Depot #GMS Inc.

Home Depot Reports Financial Results for Q3 2025

On November 18, 2025, The Home Depot®—the world's largest home improvement retailer—announced its financial results for the third quarter of fiscal 2025. The company reported a sales figure of $41.4 billion, marking a $1.1 billion or 2.8% increase from the same period in fiscal 2024. Notably, the sales included approximately $900 million from their recent acquisition of GMS Inc. (GMS), which contributed around eight weeks of sales to this quarter.

Performance Highlights

In terms of comparable sales, there was a slight growth of 0.2%, with U.S. comparable sales increasing by 0.1%. The net earnings for the quarter totaled $3.6 billion, translating to $3.62 diluted earnings per share (EPS). In comparison, the previous year's net earnings stood at the same amount but with a slightly higher EPS of $3.67.

Adjusted diluted EPS for Q3 2025 was reported at $3.74, a marginal decrease from $3.78 in Q3 2024.

Ted Decker's Insights

Ted Decker, Chairman, President, and CEO of The Home Depot, commented on the results, stating that the performance fell short of expectations, primarily due to the absence of storms in the quarter that typically drive sales in specific categories. He noted that while the underlying demand appeared stable, the anticipated increase did not materialize. Consumer uncertainty and ongoing pressures in the housing market have disproportionately affected home improvement demand.

Decker also expressed gratitude towards The Home Depot's associates for their hard work and commitment despite the challenges.

Updated Fiscal 2025 Guidance

The company has revised its fiscal 2025 guidance to reflect both the results from the third quarter and the anticipated pressures that might persist through the fourth quarter, primarily due to the low level of storm activity and the continuing uncertainty among consumers. The key guidance updates include:

• - An estimated overall sales increase of approximately 3.0%.
• - Expected GMS to contribute around $2 billion in incremental sales.
• - A slight positive change in comparable sales for the fiscal year spanning 52 weeks.
• - Approximately 12 new stores anticipated to open.
• - Gross margin estimated to remain around 33.2%.
• - An operational margin projected at about 12.6%.
• - A tax rate around 24.5%.
• - Net interest costs expected to be approximately $2.3 billion.
• - Diluted earnings per share expected to decline by about 6.0% from the $14.91 reported in fiscal 2024.

Furthermore, adjusted diluted earnings per share are anticipated to decrease by about 5.0% from the previous year’s $15.24, and capital expenditures will represent around 2.5% of total sales.

Conference Call Invitation

The Home Depot is scheduled to host a conference call to discuss the highlights and implications of the financial report at 9:00 AM Eastern Time on the same day. The call will be made available through an online broadcast and a replay on their official website.

Towards the end of this quarter, The Home Depot operated a total of 2,356 retail stores along with more than 1,200 SRS branches across the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, ten Canadian provinces, and Mexico. The company employs over 470,000 associates. Their shares are traded on the New York Stock Exchange (NYSE HD) and are part of both the Dow Jones Industrial Average and the S&P 500 index.

In conclusion, The Home Depot continues to navigate a challenging market environment while making strategic adjustments to its operational framework and investing in growth through acquisitions such as GMS. The upcoming fiscal year seems poised to test their adaptability in a dynamically shifting economic landscape.