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

The Home Depot's Third Quarter Fiscal 2025 Report

The Home Depot, currently recognized as the leading home improvement retailer globally, disclosed its earnings for the third quarter of fiscal 2025. In a release dated November 18, 2025, the company reported $41.4 billion in sales, reflecting a year-on-year increase of $1.1 billion, equivalent to 2.8%, compared to the same quarter in fiscal 2024. A significant part of the sales, approximately $900 million, originated from the acquisition of GMS Inc., which accounted for nearly eight weeks of sales within this quarter.

Despite this overall growth in sales, comparable sales rose only 0.2% during the same period. When focusing on comparable sales specifically in the U.S., there was a minimal increase of 0.1%. This indicated that while the total sales figures improved, the organic growth from existing stores and customer transactions remained sluggish.

Earnings Breakdown

The net earnings for this quarter stood at $3.6 billion, translating to $3.62 per diluted share. This figure showed a slight decrease from $3.67 per diluted share in the corresponding quarter last year. Adjusted diluted earnings per share were reported at $3.74, marking a decrease from $3.78 in Q3 of fiscal 2024.

Ted Decker, The Home Depot's chair, president, and CEO, noted that the results fell short of the company's expectations, attributing some of the difficulties to the absence of storms, which typically drive demand in certain product categories. He further commented that while the underlying demand remained relatively stable, the anticipated surge in consumer spending during the third quarter did not materialize as expected. Factors such as consumer uncertainty and persistent pressure in the housing market were identified as significant challenges affecting home improvement demand.

Updated Fiscal 2025 Guidance

Following the underwhelming results in Q3, The Home Depot has adjusted its guidance for fiscal 2025 to reflect ongoing challenges. The updated guidance anticipates total sales growth of approximately 3.0%, primarily driven by an estimated contribution of $2.0 billion from GMS for the year. The company expects comparable sales growth to remain slightly positive in the comparable 52-week period, along with plans to open about 12 new stores.

Other financial highlights include:

• - Projected gross margin of approximately 33.2%.
• - Operating margin adjusted to about 12.6%, with an adjusted operating margin of around 13.0%.
• - An effective tax rate estimated at 24.5% and net interest expense approximately $2.3 billion.
• - An expected decline in diluted earnings per share of about 6.0%, down from $14.91 in fiscal 2024, with adjusted diluted earnings per share declining around 5.0% from $15.24 in fiscal 2024.
• - Anticipated capital expenditures of roughly 2.5% of total sales.

Decker expressed gratitude towards the dedicated workforce at Home Depot and reaffirmed the company's commitment to maintaining high-performance standards amidst challenging market conditions.

Company Overview

As of the end of Q3, The Home Depot operates 2,356 retail stores and more than 1,200 SRS locations across the United States, Puerto Rico, and Canada, employing over 470,000 associates. Its stock is traded on the New York Stock Exchange under the ticker symbol HD and is part of significant indices like the Dow Jones Industrial Average and the S&P 500.

The Home Depot is scheduled to elaborate on its Q3 performance and related topics in a conference call at 9 a.m. ET today, which will be accessible via a webcast on their investor relations page. This detailed outline of financial results and forward-looking statements is crucial for investors and analysts as they gauge the company’s performance and market strategies moving into the subsequent quarters.