Home Depot Posts Surprise Same-Store Sales Growth in Q4

Core Viewpoint - Home Depot reported an unexpected increase in fourth-quarter same-store sales, indicating resilience in U.S. demand despite challenges in the housing market and limited storm activity [1] Group 1: Sales Performance - Comparable sales rose 0.4% for the quarter, surpassing consensus forecasts of a 0.36% decline [1] - In the U.S., same-store sales increased by 0.3%, compared to expectations of a 0.54% decrease [1] - Adjusted earnings per share for the three months ended February 1 were $2.72, exceeding analyst estimates of $2.55 [1] Group 2: Management Insights - CEO Ted Decker noted that results were largely in line with internal expectations, attributing limited inclement weather to reduced demand for storm-related materials [2] - Management highlighted ongoing consumer uncertainty and pressures in the housing market, with elevated home prices and subdued hiring trends affecting housing demand [3] - CFO Richard McPhail indicated that consumer caution related to cost-of-living pressures is expected to continue, with no clear catalyst for housing activity [3] Group 3: Future Outlook - Home Depot reiterated its fiscal 2026 outlook, projecting flat to 2% comparable sales growth and adjusted earnings per share ranging from flat to up 4% [4]