Financial Data and Key Metrics Changes - Total sales for Q3 2025 were $41.4 billion, an increase of 2.8% year-over-year, with adjusted diluted earnings per share at $3.74 compared to $3.78 in the same quarter last year [4][20] - Comp sales increased by 0.2% year-over-year, with U.S. comp sales up 0.1% [4][18] - Gross margin remained flat at 33.4%, while operating margin decreased to 12.9% from 13.5% year-over-year [18][19] - The effective tax rate was 24.3%, slightly down from 24.4% in Q3 2024 [19][20] Business Line Data and Key Metrics Changes - Nine out of 16 merchandising departments posted positive comps, including kitchen, bath, outdoor garden, and appliances [11] - Comp average ticket increased by 1.8%, while comp transactions decreased by 1.6% [11][12] - Online comp sales increased approximately 11% year-over-year, indicating strong performance in digital platforms [13] Market Data and Key Metrics Changes - In local currency, Canada and Mexico posted positive comps, while U.S. comps showed mixed results with positive growth in August and September but negative in October [18] - The company noted that the lack of storm activity significantly impacted sales in categories like roofing and plywood [11][18] Company Strategy and Development Direction - The company is focused on controlling operational aspects and investing in business growth, including the acquisition of GMS to enhance its market position [5][22] - Strategic initiatives are aimed at improving customer experience and operational efficiency, with a focus on pro customers through new tools and technology [9][10] - The company plans to continue investing approximately 2.5% of sales back into the business for fiscal 2025 [23] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns over consumer uncertainty and ongoing pressure in the housing market, which are affecting home improvement demand [4][31] - The company revised its fiscal 2025 guidance, expecting total sales growth of approximately 3% and adjusted diluted earnings per share to decline by about 6% compared to fiscal 2024 [22][23] - Management believes that despite current challenges, the company is gaining market share and is well-positioned for future growth [34] Other Important Information - The company opened three new stores, bringing the total store count to 2,356 [20] - Merchandise inventories increased to $26.2 billion, reflecting a $2.3 billion increase year-over-year [20] Q&A Session Summary Question: Impact of GMS on EBIT shortfall - Management explained that the inclusion of GMS and associated transaction expenses contributed to a 20 basis point impact on operating margin, affecting the fiscal year guidance [26][27] Question: Consumer demand expectations - Management noted that the lack of storm activity was a primary driver of sales pressure, and while they expected demand to pick up, ongoing consumer uncertainty remains a challenge [30][31] Question: Average ticket and promotional activity - Management indicated that the increase in average ticket was due to customers trading up for innovative products, with promotional activity remaining consistent year-over-year [39][40] Question: Margin structure improvement for GMS and SRS - Management highlighted that while there is current margin pressure, synergies from cross-selling between GMS and SRS could lead to long-term margin improvements [72][86] Question: Regional performance and consumer fatigue - Management observed no significant fatigue in upper-income customers but noted a softening in larger project backlogs among pros [83]

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Home Depot reported lower third-quarter profit and lowered its full-year outlook as an extended downturn in home improvement activity shows little sign of ending. ...

Markets continue to bleed in the early going, with stocks, cryptocurrencies, gold and silver all sliding further. Bonds are up a bit, while the dollar is flattish. To get more articles and chart analysis from MoneyShow, subscribe to our Top Pros’ Top Picks newsletter here.) What stands out about the recent selloff? It’s taking down “everything,” from stocks to Bitcoin to traditional safe havens like precious metals. The benchmark cryptocurrency briefly pierced $90,000 to the downside overnight, for insta ...

Home Depot (HD) stock fell 4% early Tuesday after the home improvement retailer reported third quarter results that missed forecasts and lowered its full-year outlook as the US housing market remains sluggish. The company expects same-store sales for the full year to be "slightly positive," whereas it had previously expected a 1% increase for 2025. Full-year profits are also now expected to fall more sharply, with adjusted earnings per share forecast to drop by 5%, more than the 2% decline the company ex ...

Core Insights - Home Depot's stock experienced a decline following an earnings miss and a pessimistic outlook, primarily due to a lack of storms and ongoing weakness in the housing market impacting demand [1] Financial Performance - The company's earnings report indicated a shortfall compared to expectations, contributing to the stock drop [1] - The overall performance was negatively influenced by external factors such as weather conditions and market trends in housing [1] Market Conditions - The housing market continues to show signs of weakness, which has adversely affected consumer demand for Home Depot's products [1] - The absence of storms, which typically drive sales in home improvement sectors, further exacerbated the situation [1]

Home Depot cut its full-year earnings guidance, warning that some unsteady consumers are hitting the pause button on big-ticket home purchases https://t.co/RPRc5tWhQy ...

Home Depot's third-quarter was mixed with fewer violent storms reaching shore, more anxiety among U.S. consumers and a housing market that is in a deep funk. The company lowered its fiscal 2025 adjusted earnings forecast but raised its expectations for sales growth. For the three months ended Nov. 2, Home Depot earned $3.6 billion, or $3.62 per share. A year earlier it earned $3.65 billion, or $3.67 per share. Removing one-time charges and benefits, earnings were $3.74 per share, a dime short of Wall St ...

Core Insights - Home Depot reported a decline in third-quarter profit and has revised its full-year outlook downward due to a prolonged downturn in home improvement activity [1] Company Summary - The company is experiencing a significant decrease in profitability, indicating challenges in the home improvement sector [1] - Home Depot's lowered full-year outlook suggests that the current market conditions are expected to persist, impacting future performance [1] Industry Summary - The home improvement industry is facing an extended downturn, with little indication of recovery in the near term [1]

Core Insights - Home Depot exceeded third-quarter sales expectations due to strong demand from professional builders and contractors, which compensated for a decline in do-it-yourself projects [1] Company Performance - The company reported robust sales driven by professional segments, indicating a shift in consumer behavior towards professional services [1] Market Trends - There is a noticeable slowdown in do-it-yourself projects, suggesting a potential shift in market dynamics and consumer preferences [1]