#USA #Atlanta #financial results #Home Depot #fiscal guidance

The Home Depot Reports First Quarter Fiscal 2025 Results

On May 20, 2025, The Home Depot®, the largest home improvement retailer in the world, announced its financial results for the first quarter of fiscal 2025. The company reported impressive sales figures, reaching a total of $39.9 billion, a notable 9.4% increase from the same period last year. While comparable store sales saw a slight decline of 0.3%, sales in the U.S. increased by 0.2%. Notably, foreign currency exchange rates negatively impacted overall comparable sales by approximately 70 basis points.

Net earnings for the first quarter stood at $3.4 billion, translating to $3.45 per diluted share, which is a decrease from the $3.6 billion or $3.63 per diluted share reported in Q1 of the prior year. Adjusted diluted earnings per share were noted at $3.56, down from $3.67 for the same period in fiscal 2024.

Ted Decker, Chairman, President, and CEO, commented, "Our first-quarter results were in line with our expectations as we observed ongoing customer engagement in smaller projects and our spring events. We feel very confident about our store readiness and product selection as spring unfolds nationwide, and I would like to thank our associates for their hard work and continued dedication."

Fiscal Year 2025 Guidance

The Home Depot also reaffirmed its guidance for the fiscal year 2025, which consists of 52 weeks, as opposed to fiscal 2024, which was a 53-week year. Here are the highlights of the guidance provided:

• - Expected total sales growth of approximately 2.8%
• - Anticipated comparable sales growth of about 1.0% for the 52-week period
• - Plans to open approximately 13 new stores
• - Projected gross margin estimated at 33.4%
• - Operating margin projected around 13.0%, and adjusted operating margin expected to reach 13.4%
• - Estimated effective tax rate at 24.5%
• - Anticipated net interest expense of about $2.2 billion
• - Anticipated diluted earnings per share to decrease by about 3% from $14.91 in fiscal 2024
• - Adjusted earnings per share expected to decline by around 2% from $15.24 in the previous fiscal year
• - Capital expenditures estimated at roughly 2.5% of total sales

The Home Depot reported operating a total of 2,350 retail stores at the end of Q1, employing over 470,000 associates across 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico. Furthermore, the company’s stocks are traded on the New York Stock Exchange under the ticker symbol HD and are included in the Dow Jones Industrial Average and the S&P 500 index.

As part of its commitment to transparency with investors, The Home Depot highlighted certain forward-looking statements regarding its forecasts, which are subject to risks and uncertainties that could affect the actual results significantly. Factors such as macroeconomic conditions, customer preferences, inventory status, competitive environment, and changes in regulatory frameworks can influence performance.

In summary, The Home Depot's solid financial performance in the first quarter of fiscal 2025 reflects robust demand, particularly in smaller home improvement projects, and sets the stage for continued growth with the company's strategic initiatives and planned store expansions. As consumers remain invested in improving their homes, The Home Depot is positioned to leverage this trend effectively.