Home Depot posts $41.8 billion Q1 sales

Home Depot reported first-quarter sales of $41.8 billion on Tuesday and kept its full-year outlook unchanged after posting results that topped Wall Street expectations. The Atlanta-based retailer said adjusted diluted earnings per share were $3.43 for the quarter ended May 3, ahead of analysts’ estimates compiled by LSEG. Net earnings fell to $3.3 billion, or $3.30 per diluted share, from $3.4 billion, or $3.45 per diluted share, a year earlier. The company said the quarter reflected steady demand for smaller projects even as higher borrowing costs and weak housing affordability continued to weigh on bigger-ticket jobs. ### How much did Home Depot sell in the quarter? Home Depot said May 19 that first-quarter sales rose 4.8% to $41.8 billion, up $1.9 billion from the same period a year earlier. Comparable sales increased 0.6%, while U.S. comparable sales rose 0.4%, the company said in its earnings release. Foreign exchange added about 55 basis points to total company comparable sales, according to the release. (ir.homedepot.com) LSEG estimates cited by CNBC had called for revenue of about $41.52 billion and adjusted earnings of $3.41 a share. Home Depot’s reported revenue came in at $41.77 billion and adjusted earnings topped that forecast by 2 cents, CNBC reported. ### Why are larger home-improvement projects still lagging? Richard McPhail, Home Depot’s chief financial officer, told CNBC that the company’s core homeowner customer remains engaged but is still pulling back on larger discretionary projects. “They continue to tell us that they are going to defer their spend on larger projects,” McPhail said, adding that the pattern was consistent with what customers had been saying for the past few years. (cnbc.com) (ir.homedepot.com) Ted Decker, Home Depot’s chair, president and chief executive, said in the company’s release that underlying demand was “relatively similar” to what the retailer saw throughout fiscal 2025 despite greater consumer uncertainty and housing affordability pressure. The company linked that backdrop to a market in which homeowners are still spending on smaller jobs and seasonal needs while postponing bigger renovations. (cnbc.com) ### What happened to profit? Net earnings for the quarter were $3.3 billion, down from $3.4 billion a year earlier, Home Depot said. Diluted earnings per share fell to $3.30 from $3.45, while adjusted diluted earnings per share declined to $3.43 from $3.56 in the prior-year period. CNBC reported that one-time items included costs tied to the value of certain intangible assets. (ir.homedepot.com) Excluding those items, the company posted the adjusted figure that beat expectations. ### What guidance did the company keep in place? Home Depot reaffirmed fiscal 2026 guidance for total sales growth of about 2.5% to 4.5% and comparable sales growth of approximately flat to 2.0%. (ir.homedepot.com) The company also said it still expects adjusted diluted earnings per share to grow approximately flat to 4.0% from $14.69 in fiscal 2025, with about 15 new stores planned this year. (cnbc.com) CNBC said the unchanged outlook compares with LSEG expectations for roughly 4% sales growth and 2.4% adjusted earnings growth. Shares were slightly lower in premarket trading after the report, CNBC reported. ### Where can investors hear the company discuss the quarter? Home Depot said it scheduled a conference call for 9 a.m. ET on May 19 to discuss the results and related matters. (ir.homedepot.com) The company said the webcast and replay would be available through its investor relations site, which also hosts the quarterly earnings materials for fiscal 2026. (cnbc.com)