CANADA - 2025/08/15: In this photo illustration, the Home Depot logo is seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images Note: Home Depot FY'24 concluded on February 2, 2025. Home Depot (NYSE: HD) is set to announce its fiscal second-quarter earnings on Tuesday, August 19, 2025, with analysts anticipating earnings of $4.70 per share on $45.37 billion in revenue. This would indicate a 2% increase in ...

Group 1: Lowe's Strategic Initiatives - Lowe's Companies, Inc. is enhancing its competitive edge through technology integration and loyalty programs, introducing "Mylow," an AI-powered Home Improvement Virtual Advisor, and a redesigned MyLowe's Pro Rewards program as part of its "Total Home" strategy [1][4] - Mylow, developed with OpenAI, offers step-by-step project guidance and is integrated into Lowe's app and website, facilitating immediate purchases of recommended tools and materials [2][9] - The revamped Pro Rewards program simplifies enrollment, includes a Spanish-language option, and allows points to be earned from the first purchase, aiming to increase wallet share among Pro customers [3][4] Group 2: Market Context and Competitor Strategies - In a selective spending environment, Lowe's is betting on AI and loyalty upgrades to deepen customer relationships and improve conversion rates, with success dependent on Mylow's recommendation accuracy and the Pro Rewards program's effectiveness [4] - The Home Depot is enhancing its in-store competitiveness by equipping associates with advanced digital tools to improve customer satisfaction and sales performance [5] - Floor & Decor is focusing on both digital and in-store strategies, broadening design services and customer offerings to enhance its competitive advantage [6][7] - Williams-Sonoma is leveraging a digital-first strategy, advancing mobile re-platforming and AI personalization to drive growth and improve e-commerce sales [8]

Core Viewpoint - Lowe's is expected to report quarterly earnings of $4.24 per share, a 3.4% increase year-over-year, with revenues projected at $23.99 billion, reflecting a 1.7% year-over-year increase [1] Earnings Estimates - The consensus EPS estimate has been revised 0.2% lower over the last 30 days, indicating a collective reevaluation by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong relationship between earnings estimate revisions and short-term stock price performance [3] Key Metrics - Analysts forecast the total number of stores for Lowe's to reach 1,752, up from 1,746 a year ago [4] - The consensus estimate for total sales floor square footage is 195.42 million, compared to 195.00 million the previous year [5] - The average store size selling square feet is expected to remain at 112.00 thousand, unchanged from the year-ago figure [5] Stock Performance - Lowe's shares have increased by 15.8% in the past month, outperforming the Zacks S&P 500 composite, which moved up by 3.3% [5] - With a Zacks Rank of 3 (Hold), Lowe's is anticipated to mirror overall market performance in the near future [5]

Federal Reserve and Interest Rates - The Federal Reserve is under political pressure, with inflation figures and weaker job data increasing the likelihood of interest rate cuts [1][4] - The implied probability of a Fed cut in September has risen to approximately 94%, up from 57% a month ago, with October at just over 60% and December at about 49% [4] Investment Opportunities - Lower interest rates are expected to benefit stocks, precious metals, and higher-risk bonds, while the Treasury yield curve may steepen modestly [6] - Potential investment winners include the Vanguard FTSE All-World ex-US ETF (VEU), SPDR Gold Shares ETF (GLD), and SPDR Bloomberg High Yield Bond ETF (JNK) [7] Home Improvement Sector - The stock market is at a critical decision point, with positive money flows observed in certain areas, particularly in the homebuilder sector [7] - Home Depot Inc. (HD) is highlighted as a bellwether for the home improvement sector, reflecting consumer sentiment and the existing home market [9][11] - Recent store traffic at Home Depot has been robust, indicating potential positive earnings results [11] Homebuilder Sector Performance - The homebuilder sector is experiencing a rebound, with smart money building long-term positions despite no rate cuts from the Federal Reserve [12] - The performance of homebuilding stocks is occurring unnoticed, suggesting a potential undervaluation in the market [12] Gold Market Trends - Gold is trending higher, indicating a shift in investment themes amid a tech boom [13] - Countries are reevaluating their trading relationships and increasing gold holdings, which may lead to a medium-term bearish outlook for the US dollar [14][16] Central Bank Influence - Central banks cutting rates and easing credit conditions are seen as supportive of bull markets, particularly in tech, financials, and gold [17]

FX Empire Logo English check-icon Important DisclaimersThe content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence ...

Core Insights - Home Depot, Inc. is expected to report second-quarter fiscal 2025 results on August 19, with anticipated year-over-year growth in both revenue and earnings per share (EPS) [1][2] - The Zacks Consensus Estimate for revenues is $45.5 billion, reflecting a 5.4% increase from the previous year [1][9] - The EPS estimate stands at $4.71, indicating a 0.9% growth compared to the same period last year [2][9] Financial Performance Expectations - Home Depot has a trailing four-quarter average earnings surprise of 2.2%, although it experienced a negative earnings surprise of 0.8% in the last reported quarter [2] - The company has an Earnings ESP of +0.34% and a Zacks Rank of 3 (Hold), suggesting a potential earnings beat [3] Strategic Initiatives - The company's "One Home Depot" plan focuses on supply-chain expansion, technology investments, and digital enhancements, which are expected to support top-line recovery [4][20] - Home Depot's interconnected retail strategy aims to provide a seamless shopping experience, contributing to its competitive advantage [4][19] Market Position and Consumer Trends - Home Depot is well-positioned to meet evolving consumer demands with a vast store network and a growing online presence [6] - Comparable store sales are projected to increase by 5.2%, driven by a 3.2% rise in customer transactions and a 1.9% increase in average ticket size [6] Challenges and Market Conditions - The company faces challenges such as softened demand in high-ticket discretionary categories and macroeconomic pressures, including elevated interest rates affecting consumer behavior [7][8] - The demand for big-ticket renovations is expected to remain under pressure, limiting growth potential in high-margin categories [10][20] Stock Performance and Valuation - Home Depot's shares have gained 13.1% over the past year, underperforming the S&P 500 and the Retail-Wholesale sector [11] - The stock trades at a forward P/E multiple of 25.81X, above the industry average of 22.42X and the S&P 500's average of 22.86X, indicating a premium valuation [16] Long-term Outlook - Despite near-term challenges, Home Depot's strong market position and strategic initiatives suggest compelling long-term growth prospects [20][22] - The company's ongoing digital transformation and expansion of the Pro ecosystem are key drivers of its investment case [22]

Core Viewpoint - Analysts project that Home Depot will report quarterly earnings of $4.71 per share, reflecting a year-over-year increase of 0.9%, with revenues expected to reach $45.51 billion, a 5.4% increase from the same quarter last year [1]. Earnings Estimates - Over the last 30 days, there has been a downward revision of 0.1% in the consensus EPS estimate for the quarter, indicating a collective reconsideration by covering analysts [2]. - Revisions to earnings estimates are significant indicators for predicting potential investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Key Metrics Projections - Analysts predict that the 'Number of stores - Retail' will reach 2,353, up from 2,340 in the same quarter last year [5]. - The estimated 'Number of customer transactions - Retail' is projected to be 460.54 million, compared to 451.00 million in the same quarter last year [5]. - The 'Average ticket - Retail' is expected to be $89.92, an increase from $88.90 in the same quarter last year [6]. Stock Performance - Home Depot shares have experienced a change of +13.9% in the past month, outperforming the +3.5% move of the Zacks S&P 500 composite [6].

Core Viewpoint - Tile Shop Holdings, Inc. (TTSH) reported a decline in net sales and profitability for the second quarter of 2025, reflecting challenges in store traffic and pricing pressures, while the stock underperformed compared to the S&P 500 Index [1][2][3]. Financial Performance - TTSH's net sales for Q2 2025 were $88.3 million, a decrease of 3.4% from $91.4 million in the same quarter last year [2]. - Gross profit fell 5.8% year-over-year to $56.8 million, with gross margin contracting 160 basis points to 64.4% due to higher discounting and increased product costs [2]. - Net income dropped to $0.4 million, or $0.01 per diluted share, down from $1.2 million, or $0.03 per diluted share, a year ago [3]. - Adjusted EBITDA decreased by 26.7% to $4.9 million, with a margin decline from 7.4% to 5.6% [3]. Operational Metrics - The operating income margin fell to 0.5% from 2% a year earlier, reflecting sales decline and margin compression [4]. - Selling, general and administrative (SG&A) expenses were $56.4 million, down 3.6% from $58.5 million the previous year, driven by cost savings from prior distribution center closures and reduced marketing spend [4]. - The store count decreased to 141 at the end of the quarter, down from 142 last year [3]. Capital Structure - TTSH maintained a conservative capital structure with no outstanding debt and a cash balance of $27.8 million, up from $20.9 million at the end of 2024 [5]. - Operating cash flow in the first half of 2025 totaled $13.5 million, compared to $23.5 million in the same period last year [5]. - The pretax return on capital employed over the trailing 12 months fell to 0.0% from 6.8% the previous year [5]. Management Insights - CEO Cabell Lolmaugh noted that product assortment refinements, particularly in entry-level and competitively priced products, helped improve unit volumes, although this was offset by increased sales of lower-priced products and heavier discounting [6]. - New product categories introduced include luxury vinyl tile, laminate, engineered wood flooring, and large-format tiles, aimed at capturing additional project scope per customer [6]. Market Challenges - Key challenges included persistently low housing turnover, which reduced customer traffic, and pricing pressure from discounting [7]. - Gross margins faced challenges from lower average selling prices and higher product costs, although a leaner cost structure helped mitigate some impacts [7]. Strategic Guidance - Management indicated a focus on continued expense control, limiting capital expenditures, and identifying operational efficiencies, without providing formal numerical guidance [8]. - TTSH emphasized its diversified sourcing from over 20 countries as a strategic advantage in navigating potential tariff volatility [8]. Recent Developments - The closure of the Spring Valley, WI, distribution center is expected to generate approximately $1 million in annualized SG&A savings [7]. - TTSH has implemented a broader cost-cutting strategy, including the closure of one retail store and significant corporate workforce reductions in response to ongoing demand pressures [9].

Core Viewpoint - Lowe's Companies, Inc. is set to report its second-quarter fiscal 2025 earnings on August 20, with expectations for revenue of $24.02 billion, reflecting a 1.9% year-over-year growth, and earnings per share (EPS) of $4.24, indicating a 3.4% increase from the previous year [1][9]. Group 1: Earnings Expectations - The Zacks Consensus Estimate for Lowe's revenues stands at $24.02 billion, implying a 1.9% growth from the prior year [1][9]. - The consensus mark for earnings has decreased by a penny to $4.24 per share, still suggesting a 3.4% increase from the year-ago period [1][9]. - Lowe's has a trailing four-quarter earnings surprise of 3.2%, with the last reported quarter outperforming the Zacks Consensus Estimate by 1.4% [2]. Group 2: Key Growth Drivers - Key factors expected to drive Lowe's second-quarter results include product innovation, the MyLowe's Rewards program, digital expansion, and resilient demand from professional customers [3]. - The acquisition of Artisan Design Group is anticipated to enhance Lowe's reach in design, distribution, and installation for new home construction and large-scale renovations [3]. - Digital growth is a significant contributor, with online sales momentum expected to continue benefiting from the home improvement marketplace powered by Mirakl [4]. Group 3: Customer Experience Enhancements - The rollout of Mylow, an AI-powered virtual home improvement advisor, along with Mylow Companion for associates, is designed to enhance customer experience and improve sales processes [5]. - These tools provide project guidance and product recommendations, which are expected to improve conversion rates and encourage repeat visits [5]. Group 4: Market Conditions and Challenges - Ongoing weakness in DIY big-ticket discretionary categories, such as flooring and kitchens, is a concern due to higher mortgage rates and affordability challenges [7]. - Rising wage and healthcare costs may pressure selling, general, and administrative (SG&A) expenses [7]. - Despite diversifying sourcing, a significant portion of Lowe's purchases still comes from China, exposing the company to potential tariff impacts [7]. Group 5: Earnings Prediction Model - The Zacks model does not predict a definitive earnings beat for Lowe's this quarter, as it has a Zacks Rank of 3 and an Earnings ESP of -0.56% [8][10].

Where: Visit the Quarterly Earnings section of the Lowe's Investor Relations website, ir.lowes.com. How: Listen live online and view the supplemental materials by following the directions above. What: Second Quarter 2025 Earnings Conference Call When: 9 a.m. ET on Wednesday, Aug. 20 A webcast replay of the call can be accessed from noon ET on Aug. 20, 2025 through Aug. 19, 2026 by visiting Events & Presentations on Lowe's Investor Relations website and clicking on Q2 2025 Lowe's Companies, Inc. Earnings Con ...