Core Insights - Home Depot reported Q2 financial results with non-GAAP EPS of $4.68, slightly below expectations by $0.01, while revenue reached $45.28 billion, reflecting a 4.8% year-over-year growth, meeting forecasts [1] - Key sales metrics showed underperformance, indicating a reduction in consumer spending on big-ticket items amid high interest rates and inflation uncertainty, with same-store sales growth at 1%, below the expected 1.4% [1][2] - The company noted a decline in same-store customer transactions by 0.4% year-over-year, while the average transaction amount increased by 1.4% [1] Financial Performance - Home Depot's total customer transactions decreased by 0.9% to 446.8 million, with the average transaction amount rising by 1.2% to $90.01 [1] - The company expects total sales to grow by 2.8% for the fiscal year, with same-store sales projected to increase by approximately 1% after excluding one-time factors [2] Consumer Behavior - Consumers are increasingly engaging in smaller projects, with 12 out of 16 sales departments reporting year-over-year sales growth [2] - The trend of postponing large projects persists due to high interest rates and economic instability, although customers are not canceling these projects [2][3] Pricing Strategy - Home Depot has maintained its pricing levels as most imported goods arrived before new tariffs were implemented, although price increases are anticipated later in the year [2][3] - The company is studying customer sensitivity to price increases and expanding procurement channels [3] Market Positioning - Home Depot is focusing on professional contractors, with a significant portion of sales coming from this segment, which typically spends more than DIY customers [4][6] - The company has made strategic acquisitions, including SRS Distribution for $18.25 billion and plans to acquire GMS for approximately $4.3 billion, enhancing its professional product distribution [6] Competitive Landscape - Home Depot's competitors, such as Floor & Decor, have noted minimal impact from recent price adjustments but anticipate further measures later in the year [3] - The company has not altered its pricing strategy despite changes in U.S. tariff policies, with a customer base that generally has better financial stability than the average consumer [7]

For her calm. >> All right. As we've been talking about Home Depot reporting earnings this morning, the company missed on the bottom line, but did show improvement in their US comps over the last three months, every month of the quarter.Joining us right now for his reaction is Brian Nagle. He is Oppenheimer senior equity research analyst. And Brian, just tell me what you think about what you saw from this release.>> Well, good morning Becky. Look, I think it's largely more of the same from Home Depot. I kno ...

And we are just getting second quarter results from Home Depot. Let's take a look at those numbers right now. Looks like earnings came in at $468 a share.That was a miss of the street's expectations of $4.71%. Revenue came in at $45.3% billion. That was just slightly light of what the street had been expecting, $45.35% billion.And then you have comp sales, which were up by 1%. The street was looking for 1.3%. That 1% was for total company sales.Home Depot is blaming foreign exchange rates for the miss on co ...

【家得宝周二开盘前将公布二季度财报，投资者关注多项指标】家得宝将于周二开盘前公布第二季度财 报，投资者关注美国同店销售额能否持续增长，以及美国房地产市场低迷态势是否缓解。 华尔街预计 家得宝上季度同店销售额增长1.4%，一季度下降0.3%，此前全球同店销售额曾连降八季。美国市场同 店销售额预计增长1.6%，将实现本土市场连续三季度正增长。 增长提速或因同比基数降低和大型非必 需项目需求回升。预计家装需求将改善，消费者会习惯高利率而不再推迟项目。 营收预计同比增长5% 至424亿美元，调整后每股收益预计为4.72美元，高于去年同期。 一季度家得宝重申年度预测，预计财 年净销售额增长2.8%，同店销售额增长1%。二季度虽未提供指引，但执行副总裁称是旺季，库存充足 且未因关税囤货。 家得宝计划与供应商合作、采购多元化，不提高价格，目标是12个月后美国以外单 一国家采购占比不超10%。 因市场预期美联储9月降息，利率缓和，家得宝股价财报公布前走高，过去 一月涨约10%，对手劳氏涨约15%。 美银分析师称，虽宏观环境波动，但家得宝将通过有机增长和并购 提升专业客户业务，继续获市场份额。 本文由 AI算法生成，仅作参考， ...

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)

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]

Home Improvement Retail - Home improvement sector is expected to turn the corner and start to see positive growth, marking a shift from "bad to less bad" [3] - The surge in rates three years prior is a key factor, as new homeowners typically spend heavily on their homes during this period [4] - Home Depot has strategically built capabilities to better serve professional customers, leading to larger and more planned purchases [6] - Home Depot's advantages have been obscured by the current lukewarm cycle for home improvement [7] Big Box Retail - The general merchandise retail environment has been unusually benign, with limited competition [8] - The impact of tariffs on big box retailers in Q2 is expected to be minimal due to resilient consumer spending [9] - Target faces execution issues and a higher skew towards discretionary items, potentially leading to tougher times [10] Walmart & Grocery - Walmart possesses significant momentum and heft, enabling it to showcase its strengths in Q2 [12] - Amazon's increased investment in grocery and rural areas poses a direct challenge to Walmart [13] - There is a risk of declining economics in the battle for everyday wallet share and customer frequency [14]