Financial Performance - Home Depot reported revenue of $39.86 billion for the quarter ended April 2025, a year-over-year increase of 9.4% [1] - The EPS for the same period was $3.56, compared to $3.63 a year ago, indicating a slight decline [1] - The reported revenue exceeded the Zacks Consensus Estimate of $39.4 billion by 1.15%, while the EPS fell short of the consensus estimate of $3.59 by 0.84% [1] Key Metrics - Comparable store sales showed a year-over-year change of -0.3%, contrasting with the 10-analyst average estimate of 0.3% [4] - The number of retail stores remained at 2,350, matching the average estimate from five analysts [4] - Comparable store sales in the U.S. had a year-over-year change of 0.2%, compared to the -1% average estimate from three analysts [4] - Sales per store were reported at $16.96 million, exceeding the three-analyst average estimate of $16.71 million [4] - The number of customer transactions in retail was 394.8 million, surpassing the two-analyst average estimate of 390.8 million [4] - The average ticket size in retail was $90.71, slightly below the $91.74 average estimate based on two analysts [4] Stock Performance - Home Depot shares have returned +9.4% over the past month, while the Zacks S&P 500 composite increased by +13.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Home Depot is committed to maintaining stable prices despite tariff pressures, contrasting with competitors like Walmart who may need to raise prices due to increased costs from tariffs [1][4]. Group 1: Home Depot's Strategy - Home Depot is actively working with suppliers to shift production away from China and is negotiating for price concessions to protect consumers from the trade war's impact [1]. - The company's CFO, Richard McPhail, stated that no single country outside the U.S. will account for more than 10% of their purchases in the next 12 months [2]. - Home Depot has not altered its financial forecast for 2025, reporting a 0.2% increase in U.S. comparable sales and a 2.1% rise in customer transactions to 394.8 million [3]. Group 2: Competitive Landscape - Unlike Home Depot, Walmart has indicated it may need to raise prices to cope with tariff-related costs, with CEO Doug McMillon acknowledging the pressure on their business [4]. - President Trump criticized Walmart for not absorbing tariff costs, suggesting that the company should maintain its profit margins without passing costs to consumers [5][6]. - The White House supports Trump's stance that foreign countries should bear the burden of tariffs, emphasizing that businesses should not pass these costs onto consumers [5][6]. Group 3: Broader Economic Context - Trump's administration has implemented sweeping tariffs, with rates of 10% on most imports and up to 30% on goods from China, which has led to increased scrutiny on how companies manage their pricing strategies [9][10]. - The President's comments reflect a shift in his approach, as he previously criticized price control proposals, now advocating for businesses to absorb tariff costs [9].

Home Depot Inc (NYSE:HD) stock is in focus this morning, after the home improvement giant made headlines by stating it will not raise prices in response to new tariffs -- a direct contrast to Walmart (WMT), which recently warned of higher consumer prices. CFO Richard McPhail told CNBC the company plans to “generally maintain current pricing levels,” citing its scale, strong supplier relationships, and years-long effort to diversify sourcing away from China.The comments came alongside the company’s first-qua ...

Financial Data and Key Metrics Changes - Total sales for Q1 2025 were $39.9 billion, an increase of 9.4% from the same period last year [6][29] - Adjusted diluted earnings per share were $3.56, a decrease of approximately 3% compared to $3.67 in Q1 2024 [7][32] - Comp sales declined by 0.3% year-over-year, with U.S. comps increasing by 0.2% [6][30] - Gross margin was 33.8%, down 35 basis points from the previous year, while operating margin was 12.9%, compared to 13.9% in Q1 2024 [30][31] - Return on invested capital was 31.3%, down from 37.1% in Q1 2024 [33] Business Line Data and Key Metrics Changes - Six out of 16 merchandising departments posted positive comps, including appliances, plumbing, indoor garden, electrical, outdoor garden, and building materials [21] - Pro comp sales were positive and outpaced DIY customer sales, with strength in pro-heavy categories like gypsum, decking, concrete, and siding [22] - Online comp sales increased approximately 8% compared to the previous year [23] Market Data and Key Metrics Changes - In local currency, Mexico posted positive comps while Canada was below the company average [7][30] - Foreign exchange rates negatively impacted total company comps by approximately 70 basis points for the quarter [30] Company Strategy and Development Direction - The company is focused on diversifying its global supply chain, with over 50% of purchases sourced in the U.S. and no single country expected to represent more than 10% of purchases outside the U.S. within 12 months [8][10] - The company aims to invest in its business to gain market share, particularly in periods of disruption, and is focused on enhancing the pro ecosystem to better serve professional customers [11][12] - The company operates in a fragmented market of approximately $1 trillion, with a healthy consumer base and increasing home equity driving confidence in home improvement investments [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the worst macroeconomic concerns have passed, with improved consumer sentiment and low unemployment [40][41] - Despite high interest rates impacting larger remodeling projects, management remains optimistic about future engagement in home improvement projects as macro confidence increases [42][43] - The company reaffirmed its fiscal 2025 guidance, expecting total sales growth of approximately 2.8% and comp sales growth of about 1% [34][35] Other Important Information - The company opened three new stores, bringing the total store count to 2,350 [32] - Merchandise inventories were $25.8 billion, up approximately $3.3 billion compared to the previous year, with inventory turns at 4.3 times [32] Q&A Session Summary Question: Insights on overall demand environment and sales trends - Management indicated that macro concerns have improved, with consumer sentiment rising and home prices continuing to increase, but high interest rates are still affecting larger remodeling projects [40][41] Question: SG&A growth and one-time impacts - SG&A grew 12% year-over-year, influenced by a legal settlement from the previous year and the addition of SRS expenses [44][45] Question: Comp guidance and market conditions - Management reaffirmed guidance, noting that FX pressure impacted results but overall business performance heading into Q2 is positive [55] Question: Tariffs and pricing strategy - The company has diversified its supply chain, with over 50% of purchases sourced in the U.S., and plans to maintain pricing without broad-based increases [67][70] Question: Deferred demand in home improvement - Management expects to capture share from deferred demand as macro conditions improve, with a focus on servicing both DIY and pro customers [74][75] Question: Regional performance and housing activity - Slight softening was noted in some markets, but overall sales have not been impacted significantly by housing price changes [108] Question: Inventory positioning and summer outlook - Management feels confident about inventory levels, with no pull forward and good positioning for the upcoming season [89][92]

Financial Data and Key Metrics Changes - Total sales for Q1 2025 were $39.9 billion, an increase of 9.4% from the same period last year [5][25]. - Adjusted diluted earnings per share were $3.56, down from $3.67 in Q1 2024, reflecting a decrease of approximately 3% [6][28]. - Gross margin was 33.8%, a decrease of 35 basis points from the previous year [26]. - Operating margin for Q1 was 12.9%, compared to 13.9% in Q1 2024 [27]. - Return on invested capital was 31.3%, down from 37.1% in the same quarter last year [29]. Business Line Data and Key Metrics Changes - Six out of 16 merchandising departments posted positive comps, including appliances, plumbing, indoor garden, electrical, outdoor garden, and building materials [19]. - Comp sales in the U.S. were positive 0.2% for the quarter, with negative 3.3% in February, positive 1.3% in March, and positive 1.8% in April [25][26]. - Pro comp sales outpaced DIY customers, with strength in pro-heavy categories like gypsum, decking, concrete, and siding [20]. Market Data and Key Metrics Changes - In local currency, Canada posted comps below the company average, while Mexico posted positive comps [6]. - Foreign exchange rates negatively impacted total company comps by approximately 70 basis points for the quarter [26]. Company Strategy and Development Direction - The company is focused on diversifying its global supply chain, with over 50% of purchases sourced in the U.S. and plans to ensure no single country outside the U.S. represents more than 10% of purchases [7][9]. - The company aims to invest in its business to gain market share, particularly in periods of disruption, and is focused on enhancing the pro ecosystem to better serve professionals [10][11]. - The addressable market for home improvement is approximately $1 trillion, with a healthy consumer base and rising home equity encouraging investment in home improvements [9]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macroeconomic environment, with customer engagement continuing from the previous fiscal year [30]. - The company reaffirmed its fiscal 2025 guidance, expecting total sales growth of approximately 2.8% and comp sales growth of about 1% compared to fiscal 2024 [30][31]. - Management noted that while there is macro uncertainty, the fundamentals of home improvement remain strong, with a healthy consumer base and increasing home equity [39][40]. Other Important Information - The company opened three new stores, bringing the total store count to 2,350 [28]. - Merchandise inventories were $25.8 billion, up approximately $3.3 billion compared to the previous year, with inventory turns down from 4.5 times to 4.3 times [28]. Q&A Session Summary Question: Insights on overall demand environment and sales trends - Management noted that macro concerns have eased, with improved consumer sentiment and low unemployment, but larger remodeling projects remain pressured due to high interest rates [36][39]. Question: SG&A growth and one-time impacts - SG&A grew 12% year-over-year, influenced by a legal settlement from the previous year and the addition of SRS expenses [41][42]. Question: Comp guidance and potential for better performance - Management reaffirmed guidance, noting that FX pressure impacted results, but they feel good about business heading into Q2 [50][51]. Question: Tariffs and pricing strategy - The company is diversifying its supply chain to mitigate tariff impacts and does not anticipate broad-based price increases for customers [60][62]. Question: Deferred demand in home improvement - Management expects to capture share opportunities from deferred demand as macro conditions improve [68][70]. Question: Regional performance and housing activity - Some markets showed slight softening, but overall sales remained stable, with weather being a significant factor in performance [99][100].

Home Depot on Tuesday held its forecast for sales in 2025, while one executive reportedly said the retailer won't raise prices because of tariffs, as other companies flag concerns and cut projections, citing uncertainty over U.S. tariffs. Rivian lowered its targets for vehicle deliveries and capital spending for 2025, noting the "current global economic landscape presents significant uncertainty," including "evolving trade regulation, policies" and tariffs. AMD said the company expects to lose $1.5 billion ...

Home Depot’s finance chief says customers shouldn’t expect tariff-driven price increases.“Because of our scale, the great partnerships we have with our suppliers and productivity that we continue to drive in our business, we intend to generally maintain our current pricing levels across our portfolio,” Chief Financial Officer Richard McPhail said in an interview with CNBC on Tuesday (May 20).He said more than half the company’s products come from within the U.S., adding that Home Depot and its suppliers hav ...

Group 1 - Lowe's is expected to report fiscal first-quarter earnings on May 21, 2025, with anticipated earnings of $2.89 per share and revenue of $21.03 billion, reflecting a 6% decrease in earnings and a 2% decline in sales year-over-year [1] - The company has a market capitalization of $130 billion, with reported revenue of $84 billion, operating profit of $10 billion, and net income of $7 billion over the last twelve months [2] - Approximately 70% of Lowe's sales come from do-it-yourself (DIY) customers, whose demand has weakened, impacting the company's performance [2] Group 2 - Historical data indicates that Lowe's stock has risen 55% of the time after earnings announcements, with a median one-day gain of 1.7% and a maximum increase of 10% [1][5] - Over the past five years, there have been 20 earnings data points for Lowe's, with 11 positive and 9 negative one-day returns, resulting in positive returns approximately 55% of the time [5] - The correlation between short-term (1D) and medium-term (5D) returns post-earnings can provide a less risky trading strategy, especially if a strong correlation exists [3][4]

"We feel great about our store readiness and product assortment as spring continues to break across the country," he said. Home Depot maintained its full-year guidance of a 2.8% rise in total sales and an approximately 1% increase for comparable sales. Retail analysts told Business Insider that Walmart's move gave other retailers air cover to follow suit. McPhail's comments come as Home Depot posted a 9.4% rise in first-quarter sales to $39.9 billion, although comparable sales fell by 0.6% due to the impact ...

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