Atlanta‑based Home Depot posted stronger-than‑expected results for the second quarter, signaling that even amid a prolonged housing‑market slowdown, American families are still investing in modest home‑improvement projects. Revenue climbed to $47.86 billion, surpassing the $47.24 billion Wall Street forecast, according to FactSet data.
Sales growth driven by smaller projects
Comparable‑store sales rose 1.3 % in the United States, while global sales at stores open at least a year increased 1.7 %. The company attributes the uptick to shoppers focusing on smaller, seasonal projects during the summer months, rather than large‑scale renovations.
Chief Financial Officer Richard McPhail said, “Our second‑quarter results exceeded our expectations. We saw broad‑based demand across the business as customers continued to engage in smaller projects.” Although the number of transactions slipped 1 %, the average receipt grew to $92.50, up from $90.01 a year earlier.
New express‑delivery option
Home Depot announced a nationwide express‑delivery service that promises to bring orders to customers within three hours or less. The service will be offered for a modest flat fee and does not require a subscription or membership, expanding the retailer’s convenience options for DIY homeowners.
Earnings and outlook
For the three months ended Aug. 2, the retailer earned $4.77 billion, or $4.79 per share. Adjusted earnings, which exclude one‑time items, were $4.92 per share, well above the $4.73 per share analysts had projected. Despite the solid performance, Home Depot maintained its 2026 sales‑growth guidance of 2.5 % to 4.5 % and kept its comparable‑sales outlook of flat to a 2 % increase.
Housing market context
The U.S. housing market has been in a slump since 2022, when mortgage rates began climbing from historic lows. Although the average long‑term mortgage rate fell slightly for the first time in six weeks, it remains higher than a year ago, keeping borrowing costs elevated. Existing‑home sales dropped 1.7 % in July, and the median sales price rose 2 % to $434,100, according to the National Association of Realtors.
Home Depot’s stock rose 1.4 % in pre‑market trading following the earnings release.
Original reporting: KTBS 3 (Shreveport) — read the source article.
