The Home Depot (NYSE:HD) 2025 Earnings Call Presentation

Market Opportunity and Strategy - The Home Depot has a massive total addressable market (TAM) of approximately $1.1 trillion[4, 6, 32], with over $900 billion remaining as an opportunity[4] - The company's strategy focuses on driving its core and culture[4, 11, 17], delivering a frictionless interconnected customer experience[4, 13, 19], and winning the Pro customer segment[4, 15, 27] - The Home Depot's total market share is approximately 15%[6, 127] Competitive Advantages and Operations - The company possesses distinct competitive advantages including its associates and culture, scale and premier real estate, brand, digital and interconnected capabilities, product authority, and supply chain[4, 7, 8, 9] - The Home Depot operates over 2,350 stores across North America[36, 122], with approximately 470,000 associates[36] - Approximately 90% of the stores are owned by the company[36] Pro Customer Focus - The Pro total addressable market is approximately $600 billion[6, 127], with approximately 50% of the market opportunity representing Pros working on complex projects[128] - The company has over 9 million Pro customers[122] and is focused on providing a unified, cross-category experience to save Pros time and money[131] - Pros on The Home Depot trade credit are increasing their spending by approximately 30% on average[141] Digital and Delivery Capabilities - The Home Depot has approximately $25 billion in annual online sales[97] and over 6 billion website and store visits annually[97, 100] - The company has approximately 16,000 delivery assets[97] and is focused on optimizing fulfillment across all assets to better serve customers[108] - Over 55% of deliveries are same or next-day for in-stock SKUs, representing a 3x+ increase from 2022[107] Financial Outlook - The company reaffirms its fiscal year 2025 guidance, including total sales growth of approximately 3%, a gross margin of approximately 332%, and an adjusted operating margin of approximately 130%[169] - The company anticipates net interest expense of approximately $23 billion and adjusted diluted EPS down approximately -5%[169] - The company estimates approximately $22 billion of pent-up demand created over the last 2 years[181]