Home Depot Reports Solid Sales Growth in First Quarter of Fiscal 2026, Reaffirms Guidance
The Home Depot®, the leading home improvement retailer globally, has released its financial results for the first quarter of fiscal 2026, showcasing strong performance amidst a turbulent economic landscape. With reported sales reaching $41.8 billion, the company experienced a year-over-year increase of $1.9 billion, or 4.8%, compared to sales during the same period in fiscal 2025.
Despite the economic pressures felt by many consumers, including uncertainties surrounding housing affordability, Home Depot's comparable sales saw a slight increase of 0.6% for the quarter, with comparable sales in the U.S. specifically rising by 0.4%. Notably, foreign exchange rates had a positive impact on overall company comparable sales, contributing approximately 55 basis points to growth.
Net earnings for the quarter stood at $3.3 billion, translating to $3.30 per diluted share. This reflects a slight decrease from $3.4 billion or $3.45 per diluted share reported in the same quarter of the previous year. When adjusting for specific financial factors, the diluted earnings per share came in at $3.43, slightly down from $3.56 year-over-year.
The company’s chair, president, and CEO, Ted Decker, commented on the results, stating that the performance aligned with expectations. He acknowledged the ongoing demand in the business, which appears stable compared to the prior fiscal year. "Our associates provided excellent customer service during this quarter, and their dedication is crucial as we navigate these market dynamics," Decker noted.
Looking ahead, Home Depot has reaffirmed its fiscal 2026 guidance, projecting total sales growth of approximately 2.5% to 4.5%. The company also anticipates comparable sales growth to remain flat to around 2.0%. Additionally, Home Depot plans to open about 15 new stores this fiscal year, indicating its commitment to expanding its footprint and customer reach.
Key financial projections include:
The Home Depot is set to hold a conference call today at 9 a.m. ET to discuss these results and other pertinent matters. This call will be accessible via a live webcast and will be available for replay on the company's investor relations website.
As of the end of the first quarter, Home Depot operates 2,361 retail stores and over 1,280 Speciality Retail Solutions locations, extending its reach across all 50 states, various territories, and provinces in Canada and Mexico. The company prides itself on employing over 470,000 associates, further solidifying its position as a key player in the home improvement sector. Home Depot stocks are actively traded on the New York Stock Exchange under the ticker symbol HD and are also included in the Dow Jones Industrial Average and the S&P 500 index. Overall, Home Depot's first-quarter performance reflects its resilience and ongoing commitment to customer service, even amid external challenges.
Investors and market watchers will need to pay close attention to how Home Depot navigates the landscape for the remainder of fiscal 2026 as consumer preferences evolve amid wider economic trends.
Despite the economic pressures felt by many consumers, including uncertainties surrounding housing affordability, Home Depot's comparable sales saw a slight increase of 0.6% for the quarter, with comparable sales in the U.S. specifically rising by 0.4%. Notably, foreign exchange rates had a positive impact on overall company comparable sales, contributing approximately 55 basis points to growth.
Net earnings for the quarter stood at $3.3 billion, translating to $3.30 per diluted share. This reflects a slight decrease from $3.4 billion or $3.45 per diluted share reported in the same quarter of the previous year. When adjusting for specific financial factors, the diluted earnings per share came in at $3.43, slightly down from $3.56 year-over-year.
The company’s chair, president, and CEO, Ted Decker, commented on the results, stating that the performance aligned with expectations. He acknowledged the ongoing demand in the business, which appears stable compared to the prior fiscal year. "Our associates provided excellent customer service during this quarter, and their dedication is crucial as we navigate these market dynamics," Decker noted.
Looking ahead, Home Depot has reaffirmed its fiscal 2026 guidance, projecting total sales growth of approximately 2.5% to 4.5%. The company also anticipates comparable sales growth to remain flat to around 2.0%. Additionally, Home Depot plans to open about 15 new stores this fiscal year, indicating its commitment to expanding its footprint and customer reach.
Key financial projections include:
- - Gross margin expected to be around 33.1%.
- - Operating margin forecasted between 12.4% to 12.6%.
- - Adjusted operating margin anticipated to be around 12.8% to 13.0%.
- - Effective tax rate estimated at approximately 24.3%.
- - Net interest expense projected to be about $2.3 billion.
- - Diluted earnings-per-share growth expected to remain flat to approximately 4.0% from fiscal 2025's figures of $14.23.
- - Adjusted diluted earnings-per-share is also expected to grow flat to 4.0%, starting from $14.69 in fiscal 2025.
- - Capital expenditures are anticipated to account for approximately 2.5% of total sales.
The Home Depot is set to hold a conference call today at 9 a.m. ET to discuss these results and other pertinent matters. This call will be accessible via a live webcast and will be available for replay on the company's investor relations website.
As of the end of the first quarter, Home Depot operates 2,361 retail stores and over 1,280 Speciality Retail Solutions locations, extending its reach across all 50 states, various territories, and provinces in Canada and Mexico. The company prides itself on employing over 470,000 associates, further solidifying its position as a key player in the home improvement sector. Home Depot stocks are actively traded on the New York Stock Exchange under the ticker symbol HD and are also included in the Dow Jones Industrial Average and the S&P 500 index. Overall, Home Depot's first-quarter performance reflects its resilience and ongoing commitment to customer service, even amid external challenges.
Investors and market watchers will need to pay close attention to how Home Depot navigates the landscape for the remainder of fiscal 2026 as consumer preferences evolve amid wider economic trends.
Topics Consumer Products & Retail）
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