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Home Depot News: Earnings, Strategies, & Company Outlook

By: Jasmin Espinas
May 23, 2025

Home Depot holds a dominant position in home improvement retail, with consistent performance across North America. In recent news, the company released its Q1 2025 earnings, showing its response to shifts in consumer demand and ongoing cost pressures.

This article presents the latest numbers, highlights Home Depot’s current pricing strategy, and outlines initiatives the company prioritizes throughout the year.

Latest Home Depot News: Revenue Growth Amid Mixed Sales Trends

On May 20, Home Depot reported $39.9 billion in revenue for Q1 2025, up 9.4% from the same period last year. Comparable sales dipped 0.3% overall, while U.S. comparable sales inched up 0.2%. Currency fluctuations reduced total comparable sales by about 70 basis points.

Moreover, net earnings landed at $3.4 billion, or $3.45 per diluted share, slightly down from $3.6 billion and $3.63 per share in Q1 2024.

Chair, president, and CEO Ted Decker cited steady demand for seasonal items and smaller-scale projects.

“Our first quarter results were in line with our expectations as we saw continued customer engagement across smaller projects and in our spring events,” said Decker.

He added, “We feel great about our store readiness and product assortment as spring continues to break across the country, and I would like to thank our associates for their continued hard work and dedication.”

On the other hand, for the rest of the fiscal year, Home Depot expects total sales growth of around 2.8%. Comparable sales are also projected to rise 1.0%.

The company plans to open 13 stores, maintain a gross margin of 33.4%, and operate at a margin of roughly 13.0%. Adjusted operating margin is forecast at 13.4%.

Other projections include net interest expense of $2.2 billion and a 3% decline in diluted EPS from last year’s $14.91.

Additionally, adjusted EPS is expected to drop 2% from $15.24. Meanwhile, capital spending will account for about 2.5% of total sales.

Home Depot News: The Company Doesn’t Anticipate Raising Its Prices

Home Depot plans to keep prices steady despite new U.S. tariffs. The decision follows stronger-than-expected first-quarter sales, which were driven partly by consistent orders from professional contractors.

Chief Financial Officer (CFO) Richard McPhail stated that within the next year, no single foreign country will account for over 10% of Home Depot’s purchasing volume. This move is part of a broader effort to reduce dependency on specific markets.

McPhail also noted that supplier agreements and a more distributed sourcing strategy would allow the company to keep pricing stable across its product range.

This approach contrasts with Walmart, which recently signaled that tariffs could raise prices.

That comment drew public criticism from former President Donald Trump, who urged Walmart to absorb the cost increases instead.

Home Depot 2025 News: Community Support and Long-Term Growth Plans

Home Depot has continued expanding its outreach and initiatives. In collaboration with Long Island nonprofit General Needs, employees from multiple store locations packed 140 duffel bags with basic necessities for unhoused veterans. The bags included socks, towels, underwear, and hygiene items.

Lonnie Sherman, who co-founded the organization, credited the volunteers for helping meet a persistent demand among former service members facing housing instability.

Separately, in January, Home Depot pledged $3 million through its foundation to aid recovery efforts following the Los Angeles wildfires.

The funds will go toward short-term relief and rebuilding support in the affected communities.

Last June 2024, in a move to strengthen its professional services division, Home Depot acquired SRS Distribution for $18.25 billion.

The deal, announced in March 2024, brought in a large specialty distributor serving roofers, landscapers, and pool contractors. CEO Ted Decker said the acquisition aligns with Home Depot’s growth strategy and expands its reach into targeted trades.

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Conclusion

Home Depot remains steady as it balances modest growth with ongoing investments in supply chain, community partnerships, and expansions. With pricing held in check and recent acquisitions focused on long-term value, the company is positioning itself for measured gains for the rest of the year.

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