Core Insights - Home Depot's fourth-quarter performance exceeded Wall Street expectations despite a cautious consumer environment and a weak housing market [1] - The company reported earnings of $2.57 billion, or $2.58 per share, surpassing analyst projections of $2.53 per share [1] - Revenue for the quarter was $38.2 billion, down from $39.7 billion a year earlier, but above the expected $38.09 billion [1] Financial Performance - Earnings per share adjusted for one-time charges were $2.72, compared to $3.02 per share a year earlier [1] - The extra week in fiscal 2024 contributed approximately $0.30 per share to the previous year's earnings [1] - Comparable store sales increased by 0.4%, with U.S. comparable store sales rising by 0.3% [1] Consumer Behavior - Customer transactions decreased by 1.6% in the quarter, while the average spending per transaction rose to $91.28 from $89.11 a year earlier [1] - The housing market slump has led to reduced spending, particularly affecting Home Depot, as consumers are more focused on smaller projects rather than large-scale renovations [1][1] - Consumer confidence hit its lowest level since 2014 in January, contributing to cautious spending behavior [1] Future Outlook - For fiscal 2026, Home Depot anticipates adjusted earnings to be flat to up 4% from fiscal 2025's $14.69 per share [1] - The company expects total sales growth of approximately 2.5% to 4.5% and comparable sales growth to be flat to up 2% [1]

ATLANTA (AP) — Home Depot’s (HD) fiscal fourth-quarter performance was muted, hampered by an extra week in the prior-year period and ongoing caution by American consumers amid a weak housing market. But the home improvement retailer’s adjusted earnings and revenue managed to top Wall Street’s expectations. The Atlanta-based company earned $2.57 billion, or $2.58 per share, for the three months ended Feb. 1. A year earlier it earned $3 billion, or $3.02 per share. The extra week in fiscal 2024 added appr ...

Core Insights - Home sales in November increased for the third consecutive month, but 2025 sales are projected to be at a 30-year low [1] - Existing home sales rose by 0.5% from October to a seasonally adjusted annual rate of 4.13 million, attributed to lower mortgage rates [1][2] - Despite recent improvements, the housing market remains in a slump due to high prices, elevated mortgage rates, and consumer unease, with sales expected to be the lowest since 1995 [4] Sales Performance - Sales increased month-over-month in the Northeast and South, remained flat in the West, and decreased in the Midwest [5] - Year-over-year, home sales are down by 1% [5] - Housing inventory decreased by 5.9% to 1.43 million units compared to October, but showed a 7.5% improvement from November 2024 [5] Economic Influences - The health of the labor market and inflation trends will be critical for the housing market in the upcoming year [5] - A rebound in the housing market is contingent on a solid labor market, income growth, and economic resilience amid ongoing affordability challenges and elevated mortgage rates [6]