The shares of the Home Depot (NYSE: HD) decreased by 1% on Wednesday. The share has dropped by 6% in the past three months. The retailer for the home improvement delivered mixed results in the first quarter of 2025, since it is still exposed to an uncertain macroeconomic environment. Nevertheless, the company remains confident that it can control this current landscape.
Q1 performance
In the first quarter of 2025, Home Depot's sales increased by 9.4% to 39.9 billion US dollars compared to the same period last year. The comparable sales decreased by 0.3%. The adjusted result decreased by 3% to USD 3.56 per share compared to the previous year.
Navigate challenges
In the first quarter, Home Depot has carried out minor redesign activities and spring projects to consumers, but larger conversion projects remain under pressure of higher interest rates. Discretionary projects such as kitchen and bath remodels that normally require financing continued to record a softer commitment. The company is still optimistic about the demand in connection with spring in connection with spring.
HD is of the opinion that it is well positioned to navigate through the current macroeconomic environment, with great opportunities in a strongly fragmented market and a healthy consumer with stable jobs and wages. The appreciation of real estate prices together with an aging housing stock that requires maintenance and updates is further trust.
Home Depot continues to record a strong performance by SRS, which achieved sales of 2.6 billion US dollars for the first quarter. SRS delivered better growth in the main carriers and continues to achieve a share. It also results in profits in the pro segment. Home Depot expects SRS to be achieved for the 2025 financial year.
Home Depot believes that it has significant flexibility in terms of its procurement strategy. Over 50% of its purchases are currently being obtained in the United States. The company has worked on diversifying its global supply chain, and it is assumed that in a year no single country outside the United States will make up more than 10% of its purchases. Against this background and the current tariff situation, Home Depot does not plan to increase its prices and at the same time see the opportunity to gain a share in this environment.
outlook
Home Depot expects the total turnover to grow approx. 2.8% in the 2025 financial year. The comparable sales are expected to increase by approx. 1% for the comparable period of 52 weeks. The adapted EPS is expected to lose weight. 2% YOY.