Group 1 - Home Depot is set to release its Q2 earnings report before the market opens on Tuesday, with investors focusing on same-store sales growth and the state of the U.S. housing market [1] - Wall Street anticipates a 1.4% increase in same-store sales for Home Depot in the last quarter, following a 0.3% decline in Q1, marking a potential turnaround after eight consecutive quarters of decline globally [1] - The U.S. same-store sales are expected to rise by 1.6%, indicating three consecutive quarters of positive growth in the domestic market [1] Group 2 - The anticipated growth may be attributed to a lower year-over-year comparison base and a rebound in demand for large non-essential projects, with home improvement demand expected to improve as consumers adapt to high interest rates [1] - Revenue is projected to increase by 5% year-over-year to $42.4 billion, with adjusted earnings per share expected to be $4.72, surpassing the previous year's figures [1] - Home Depot reaffirmed its annual forecast in Q1, expecting a 2.8% increase in net sales and a 1% rise in same-store sales for the fiscal year [1] Group 3 - Although no guidance was provided for Q2, the Executive Vice President indicated that it is a peak season, with sufficient inventory and no stockpiling due to tariffs [1] - Home Depot plans to collaborate with suppliers and diversify procurement without raising prices, aiming for a maximum of 10% of procurement from any single country outside the U.S. within 12 months [1] - Following market expectations of a Federal Reserve rate cut in September, Home Depot's stock price has risen approximately 10% over the past month, while competitor Lowe's has seen a 15% increase [1] Group 4 - Analysts from Bank of America noted that despite macroeconomic fluctuations, Home Depot is expected to enhance its professional customer business through organic growth and acquisitions, continuing to gain market share [1]

Group 1 - Home Depot's same-store sales growth for Q2 was 1%, below the expected 1.39% [1] - Q2 sales revenue was $45.28 billion, compared to the forecast of $45.43 billion [1] - Adjusted earnings per share for Q2 were $4.68, slightly below the expected $4.72 [1] Group 2 - Home Depot continues to forecast an annual revenue growth of approximately 2.8% [1]

A key Home Depot sales metric came in shy of expectations in the latest quarter, a sign that consumers are staying away from big purchases https://t.co/hgJjz5S0H0 ...

[Performance Highlights & Outlook](index=1&type=section&id=Performance%20Highlights%20%26%20Outlook) The Home Depot reported a 4.9% increase in sales for the second quarter of fiscal 2025, reaching $45.3 billion, with comparable sales up 1.0%, and reaffirmed its full-year guidance anticipating total sales growth of approximately 2.8% and a slight decline in diluted earnings per share [Second Quarter Fiscal 2025 Performance](index=1&type=section&id=Second%20Quarter%20Fiscal%202025%20Performance) In Q2 FY2025, sales grew 4.9% year-over-year to $45.3 billion, driven by a 1.0% increase in comparable sales (1.4% in the U.S.), with net earnings stable at $4.6 billion, while diluted EPS saw a slight decrease to $4.58 from $4.60, though adjusted diluted EPS rose slightly to $4.68 Q2 FY2025 Key Financial Metrics | Metric | Q2 FY2025 | Q2 FY2024 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $45.3 billion | $43.2 billion (approx.) | +4.9% | | Comparable Sales | +1.0% | N/A | N/A | | U.S. Comparable Sales | +1.4% | N/A | N/A | | Net Earnings | $4.6 billion | $4.6 billion | 0.0% | | Diluted EPS | $4.58 | $4.60 | -0.4% | | Adjusted Diluted EPS | $4.68 | $4.67 | +0.2% | - CEO Ted Decker noted that momentum from the latter half of the previous year continued, with customers engaging more in smaller home improvement projects[2](index=2&type=chunk) - Foreign exchange rates had a negative impact of approximately **40 basis points** on total company comparable sales[1](index=1&type=chunk) [Fiscal 2025 Guidance](index=1&type=section&id=Fiscal%202025%20Guidance) The company reaffirmed its guidance for fiscal 2025, projecting total sales growth of approximately 2.8% and comparable sales growth of 1.0%, while anticipating an adjusted operating margin of 13.4% and an approximate 2% decline in adjusted diluted EPS from fiscal 2024 Fiscal 2025 Full-Year Guidance | Metric | Guidance | | :--- | :--- | | Total Sales Growth | ~2.8% | | Comparable Sales Growth | ~1.0% (52-week basis) | | Gross Margin | ~33.4% | | Operating Margin | ~13.0% | | Adjusted Operating Margin | ~13.4% | | Diluted EPS | Decline ~3% from $14.91 | | Adjusted Diluted EPS | Decline ~2% from $15.24 | | Capital Expenditures | ~2.5% of total sales | - The company plans to open approximately **13 new stores** in fiscal 2025[3](index=3&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The consolidated financial statements detail the company's performance, with net sales rising 7.0% to $85.1 billion for the first six months of fiscal 2025, while net earnings declined 2.2% to $8.0 billion, total assets increased to $100.0 billion, and operating cash flow decreased to $9.0 billion from $10.9 billion in the prior-year period [Condensed Consolidated Statements of Earnings](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) For the six months ended August 3, 2025, net sales grew 7.0% to $85.1 billion, but higher operating expenses (up 10.9%) led to nearly flat operating income at $11.7 billion, consequently decreasing net earnings by 2.2% to $8.0 billion, with comparable sales for the six-month period increasing by 0.4% Six Months Ended August 3, 2025 vs. July 28, 2024 | Metric (in millions) | Six Months FY2025 | Six Months FY2024 | % Change | | :--- | :--- | :--- | :--- | | Net Sales | $85,133 | $79,593 | +7.0% | | Gross Profit | $28,584 | $26,849 | +6.5% | | Operating Income | $11,688 | $11,613 | +0.6% | | Net Earnings | $7,984 | $8,161 | -2.2% | | Diluted EPS | $8.03 | $8.23 | -2.4% | Selected Sales Data (Q2 FY2025) | Metric | Q2 FY2025 | Q2 FY2024 | | :--- | :--- | :--- | | Comparable Sales (% change) | 1.0% | (3.3)% | | Comparable Customer Transactions (% change) | (0.4)% | (2.2)% | | Comparable Average Ticket (% change) | 1.4% | (1.3)% | | Average Ticket | $90.01 | $88.90 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of August 3, 2025, total assets stood at $100.0 billion, up from $96.8 billion a year earlier, supported by higher cash, receivables, and inventories, while total liabilities decreased to $89.4 billion from $92.4 billion, primarily due to a reduction in long-term debt, which significantly boosted stockholders' equity to $10.7 billion from $4.4 billion Balance Sheet Highlights (in millions) | Account | Aug 3, 2025 | Jul 28, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $2,804 | $1,613 | | Merchandise inventories | $24,843 | $23,060 | | Total current assets | $35,391 | $32,273 | | Total assets | $100,049 | $96,846 | | **Liabilities & Equity** | | | | Total current liabilities | $30,846 | $28,123 | | Long-term debt | $45,917 | $51,869 | | Total liabilities | $89,384 | $92,426 | | Total stockholders' equity | $10,665 | $4,420 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of fiscal 2025, net cash from operating activities was $9.0 billion, a decrease from $10.9 billion in the prior year, mainly due to changes in working capital, with net cash used in investing activities at $1.9 billion, and financing activities using $6.0 billion, largely for cash dividends ($4.6 billion), a significant reversal from the $6.1 billion provided by financing activities in the same period last year Cash Flow Summary (Six Months Ended, in millions) | Activity | FY2025 | FY2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $8,968 | $10,906 | | Net Cash used in Investing Activities | $(1,892) | $(19,098) | | Net Cash (used in) provided by Financing Activities | $(5,980) | $6,113 | | Change in Cash and Cash Equivalents | $1,096 | $(2,079) | | Cash and Cash Equivalents at end of period | $2,804 | $1,613 | [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) The company provides non-GAAP measures, including adjusted operating income and adjusted diluted EPS, to offer a clearer view of underlying business performance, with adjustments primarily excluding the amortization expense from acquired intangible assets to facilitate period-to-period comparisons - The company presents adjusted operating income, adjusted operating margin, and adjusted diluted EPS as supplemental, non-GAAP financial measures[18](index=18&type=chunk) - These non-GAAP measures exclude the impact of amortization expense from acquired intangible assets to help investors better analyze performance and compare with peers[18](index=18&type=chunk)[19](index=19&type=chunk) [Reconciliation of Adjusted Operating Income and Margin](index=8&type=section&id=Reconciliation%20of%20Adjusted%20Operating%20Income%20and%20Margin) For Q2 2025, GAAP operating income was $6.56 billion (14.5% margin), and after adding back $139 million in acquired intangible asset amortization, the non-GAAP adjusted operating income was $6.69 billion, resulting in an adjusted operating margin of 14.8% Q2 Adjusted Operating Income Reconciliation (in millions) | Metric | Q2 FY2025 | Q2 FY2024 | | :--- | :--- | :--- | | Operating income (GAAP) | $6,555 | $6,534 | | Acquired intangible asset amortization | $139 | $90 | | **Adjusted operating income (Non-GAAP)** | **$6,694** | **$6,624** | | Operating margin (GAAP) | 14.5% | 15.1% | | **Adjusted operating margin (Non-GAAP)** | **14.8%** | **15.3%** | [Reconciliation of Adjusted Diluted Earnings Per Share](index=8&type=section&id=Reconciliation%20of%20Adjusted%20Diluted%20Earnings%20Per%20Share) In Q2 2025, the GAAP diluted EPS of $4.58 was adjusted by adding back $0.14 for intangible asset amortization and subtracting a $0.04 tax impact, resulting in a non-GAAP adjusted diluted EPS of $4.68, a 0.2% increase from the prior year's $4.67 Q2 Adjusted Diluted EPS Reconciliation | Metric (per share) | Q2 FY2025 | Q2 FY2024 | | :--- | :--- | :--- | | Diluted EPS (GAAP) | $4.58 | $4.60 | | Impact of acquired intangible asset amortization | $0.14 | $0.09 | | Income tax impact of non-GAAP adjustment | $(0.04) | $(0.02) | | **Adjusted diluted EPS (Non-GAAP)** | **$4.68** | **$4.67** | [Company Information and Disclosures](index=2&type=section&id=Company%20Information%20and%20Disclosures) This section provides an overview of The Home Depot's operational scale, including its store count and employee numbers, and contains standard legal disclaimers regarding forward-looking statements and the use of non-GAAP financial measures [Company Overview](index=2&type=section&id=Company%20Overview) At the end of the second quarter, The Home Depot operated a total of 2,353 retail stores and over 800 branches across North America, employing over 470,000 associates, with its stock being a component of the Dow Jones Industrial Average and S&P 500 index - The company operated **2,353 retail stores** and over **800 branches** at the end of Q2[5](index=5&type=chunk) - Operations span all 50 U.S. states, D.C., Puerto Rico, U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico[5](index=5&type=chunk) - The company employs over **470,000 associates**[5](index=5&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section provides a standard cautionary note that the earnings release contains forward-looking statements based on current expectations, warning that these statements are not guarantees of future performance and are subject to various risks and uncertainties that could cause actual results to differ materially - The report contains "forward-looking statements" which are based on current information and expectations and are not guarantees of future performance[7](index=7&type=chunk) - These statements are subject to risks and uncertainties, including macroeconomic conditions, competition, and supply chain disruptions, which could cause actual results to differ materially[7](index=7&type=chunk)[8](index=8&type=chunk)

ATLANTA, Aug. 19, 2025 /PRNewswire/ -- The Home Depot®, the world's largest home improvement retailer, today reported sales of $45.3 billion for the second quarter of fiscal 2025, an increase of $2.1 billion, or 4.9% from the second quarter of fiscal 2024. Comparable sales for the second quarter of fiscal 2025 increased 1.0%, and comparable sales in the U.S. increased 1.4%. For the second quarter of fiscal 2025, foreign exchange rates negatively impacted total company comparable sales by approximately 40 ba ...

Company News - Riskified Ltd. shares dropped 16% following the release of second-quarter results [4] - Intel Corp. saw a premarket increase of 6.42% after SoftBank Group agreed to invest $2 billion in the company [15] - Palo Alto Networks Inc. rose 5.58% after reporting better-than-expected financial results for the fourth quarter of fiscal 2025 and providing strong guidance for fiscal 2026 [15] - Graphjet Technology GTI surged 34.32% after shareholders approved a share consolidation plan with a 1-for-60 ratio [15] - Laser Photonics Corp. experienced a significant increase of 63.01% following a second-quarter earnings report showing a 317% year-over-year revenue increase [15] - Fabrinet FN fell 10.02% despite reporting positive fourth-quarter financial results for fiscal 2025, as it projected fiscal first-quarter revenue below estimates [15] - Home Depot Inc. was up 0.45% ahead of its earnings report, with analysts estimating earnings of $4.69 per share on revenue of $45.31 billion [15] - Keysight Technologies Inc. was slightly up as analysts expect earnings of $1.67 per share on revenue of $1.32 billion [15] - Toll Brothers Inc. rose 0.17% with expected earnings of $3.60 per share on revenue of $2.86 billion [15] - Viking Therapeutics Inc. increased by 5.73% amid speculation of a potential acquisition by Eli Lilly & Co. [15] Industry Insights - The second-quarter earnings season has shown strong results, with S&P 500 earnings per share (EPS) growth projected at nearly 12%, significantly exceeding the sub-5% consensus estimate from June 30 [7] - The "Magnificent Seven" technology companies contributed to nearly 30% earnings growth, driven by continued investment in artificial intelligence [8] - Revenue for the S&P 500 grew by 6.3%, surpassing quarter-end expectations by over 2% [14] - A strong 81% of companies beat EPS estimates, exceeding the five-year average of 78% [14] - The communication services, technology, and financials sectors exhibited the fastest earnings growth [14]

Let's have a look at how Benzinga's most-accurate analysts have rated the company in the recent period. Considering buying HD stock? Here's what analysts think: The Home Depot, Inc. HD will release earnings results for the second quarter, before the opening bell on Tuesday, Aug. 19. Analysts expect the home improvement retailer to report quarterly earnings at $4.69 per share, up from $4.60 per share in the year-ago period. Home Depot projects to report quarterly revenue of $45.31 billion, compared to the $4 ...

Market Overview - A-shares opened high and closed at a ten-year high, with the Shanghai Composite Index rising by 0.85% and trading volume reaching 2.81 trillion yuan, the highest since October 2024[3][16] - The Hang Seng Index fell by 0.37%, while the Hang Seng Technology Index increased by 0.65%[12] - U.S. stocks showed mixed performance, with the Dow Jones down 0.1% and the S&P 500 virtually unchanged, as investors awaited key earnings reports and the Jackson Hole meeting[10] Monetary Policy Insights - The People's Bank of China emphasized a moderately loose monetary policy, with potential for further reserve requirement ratio (RRR) and interest rate cuts if domestic demand does not recover sufficiently[5] - The report highlighted a focus on improving the efficiency of capital allocation and supporting high-quality consumption finance to sustain domestic demand expansion[5] Commodity and Forex Movements - International oil prices rose by approximately 1%, with WTI crude oil closing at $63.42 per barrel, driven by geopolitical developments[27] - The U.S. dollar index increased by 0.3%, while the euro appreciated by 12.6% year-to-date against the dollar[26] Stock Performance Highlights - Notable stock movements included NetEase, which is expected to see stable growth in its gaming segment, with a target price of $143, up from $130.30[8] - Mobileye's stock is projected to rise as it expands its advanced driver-assistance systems (ADAS) business, with a target price of $17.6[8] Sector Performance - In the A-share market, sectors such as information technology and healthcare saw gains of 2.2% and 1.0%, respectively, while real estate and energy sectors faced declines[17] - In Hong Kong, the healthcare and consumer goods sectors both rose by 1.9%, while the energy sector fell by 1.7%[12] Global Economic Indicators - The U.S. 10-year Treasury yield rose to 4.33%, reflecting market expectations ahead of the Federal Reserve's upcoming announcements[30] - The report noted that inflationary pressures and fiscal risks are key concerns for the UK, with the 30-year government bond yield reaching its highest level since 1998[30]

Core Viewpoint - Investors are closely monitoring the upcoming earnings reports from Home Depot and Lowe's for indications of improvement in the home and garden market, which has been facing several challenges [1][2]. Industry Summary - The home and garden retail sector is experiencing difficulties due to a sluggish housing market, tariffs, high interest rates, and consumer caution regarding large purchases. Despite overall retail growth from May to July, building materials and garden supply retailers reported year-over-year declines of at least 4% [2]. - Home Depot and Lowe's have been gaining market share from smaller competitors, benefiting from their strong brand presence and competitive pricing strategies [3]. Company Summary - Home Depot reported total sales of $39.9 billion for its first quarter, reflecting a 9.4% year-over-year increase, although comparable sales decreased by 0.2% due to foreign exchange impacts [4]. - Lowe's experienced a decline in total sales from $21.4 billion to $20.9 billion year-over-year, with comparable sales down 1.7%. The company attributed this drop to unfavorable weather conditions, though it noted growth in online sales and its professional business segment [5]. - Lowe's emphasized its commitment to customer service, achieving the 1 ranking in Customer Satisfaction among Home Improvement Retailers according to J.D. Power. The company is focusing on strategic investments in technology and store environments to enhance customer experience [6].

Core Insights - Lowe's (LOW) and Home Depot (HD) are in a competitive market, both facing challenges as consumer spending on big-ticket home improvement items has decreased post-COVID [1][15] - Both companies have underperformed relative to the S&P 500 in 2025, reflecting a similar trajectory in their stock performances [1][7] Analyst Expectations - Analysts have not revised EPS and sales estimates for both companies recently, with LOW expected to see 1.5% EPS growth on 3.4% higher sales, while HD is projected to have a 5.4% increase in EPS with 1.0% sales growth [3] - Despite LOW's anticipated stronger sales growth, HD has shown more resilience in its top line, with year-over-year (YoY) growth rates turning positive after previous declines [4][5] Sales and Performance Metrics - LOW's YoY sales growth rates have been negative since early 2023, while HD's sales have shown improvement with a smaller YoY decline of 0.3% compared to LOW's 1.7% [8][10] - HD's shares trade at a forward 12-month earnings multiple of 25.3X, a 29% premium over LOW's 19.6X, indicating a historical premium for HD [9] Market Environment - Both companies are navigating a challenging demand environment post-COVID, with rising interest rates contributing to softer consumer demand [15][16] - Guidance from Home Depot's earnings report will be crucial for LOW's expectations, as both companies maintain a Zacks Rank 3 (Hold) [17]