Home Depot says small projects lift sales

Home Depot said on May 19 that smaller home projects helped lift first-quarter sales as customers continued to put off larger renovation jobs. The Atlanta-based retailer reported fiscal first-quarter sales of $41.8 billion, up 4.8% from a year earlier, while comparable sales rose 0.6% and U.S. comparable sales increased 0.4%. 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. Chief Executive Ted Decker said underlying demand looked “relatively similar” to what the company saw through fiscal 2025 despite consumer uncertainty and pressure on housing affordability. ### What exactly improved in Home Depot’s quarter? Home Depot said first-quarter sales increased by $1.9 billion from the same period a year earlier. The company’s reported growth came even as comparable sales rose by less than 1%, suggesting the quarter was supported by a mix of incremental demand and other factors including foreign exchange, which added about 55 basis points to total company comparable sales. (corporate.homedepot.com) Adjusted diluted earnings per share were $3.43 in the quarter, down from $3.56 a year earlier. The company nevertheless reaffirmed its fiscal 2026 guidance, including total sales growth of about 2.5% to 4.5% and comparable sales growth ranging from flat to 2.0%. ### Why are smaller projects holding up better than big renovations? IBTimes reported on May 19 that Home Depot said customers were still deferring larger renovation projects. (corporate.homedepot.com) The report said shoppers were continuing to spend on tools, paint and supplies for smaller jobs while putting off bigger, financed remodels. Ted Decker said in the earnings release that consumer uncertainty and housing affordability pressure remained part of the backdrop. (corporate.homedepot.com) That aligns with a market in which homeowners may still be maintaining homes and completing lower-cost projects, while delaying larger discretionary work that often depends more heavily on financing. ### What do the quarter’s numbers say about demand? (corporate.homedepot.com) Comparable sales growth of 0.6% indicates demand improved modestly after a softer period for home-improvement spending. U.S. comparable sales growth of 0.4% pointed to a similar pattern in Home Depot’s core market. Home Depot said the underlying demand in its business was “relatively similar” to fiscal 2025. (corporate.homedepot.com) The company also said its online comparable sales posted a fourth straight quarter of double-digit year-over-year growth, according to an infographic released with the results. ### How big is Home Depot right now? At the end of the first quarter, Home Depot said it operated 2,361 retail stores and more than 1,280 SRS locations. (corporate.homedepot.com) The company said those operations span all 50 U.S. states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. Investor documents on Home Depot’s website describe the company as the world’s largest home-improvement specialty retailer and say fiscal 2025 net sales were $164.7 billion. (corporate.homedepot.com) ### What comes next from Home Depot? Home Depot’s investor relations calendar lists its annual meeting of shareholders for May 21, 2026, at 9 a.m. ET. The same calendar lists the company’s second-quarter 2026 earnings release for Aug. 18, 2026. (corporate.homedepot.com) (ir.homedepot.com 1) (ir.homedepot.com 2)