Home Depot posted a 1% increase in comparable same-store sales in its fiscal second quarter ending August 3, 2025, as consumers delayed major renovations but continued spending on smaller, cash-funded home upgrades. U.S. comparable sales rose 1.4% over the same period.
The company’s total revenue climbed to $45.28 billion, up from $43.18 billion a year earlier, although it slightly missed analyst forecasts of $45.41 billion. Shares rose more than 3% Tuesday, with investors encouraged by signs of resilience despite macroeconomic pressure.
Average ticket value increased to $90.01 from $88.90 last year, even as transactions declined 0.9%. Shoppers are prioritizing projects they can pay for with cash, deferring larger undertakings due to high interest rates and economic uncertainty, CFO Richard McPhail said on a call with analysts Tuesday. CEO Ted Decker added that easing mortgage rates could spur a recovery in bigger renovations.
Home equity has doubled since 2019, but McPhail said homeowners are drawing on it at historically low levels. Meanwhile, high home prices and slow home sales continue to weigh on demand for major improvements.
Tariffs are beginning to affect pricing. While 50% of Home Depot’s merchandise is sourced domestically and thus tariff-free, the company now expects modest price increases in select categories. To mitigate exposure, executives said Home Depot is accelerating supply chain diversification and reducing discounts on some garden items. EVP Billy Bastek said bundled home products like flooring and vanities remain a focus for affordability.
Home Depot reaffirmed its full-year forecast for 2.8% sales growth, though it expects adjusted earnings per share to fall 2% compared with 2024. To strengthen its position in the professional builder market, the company agreed to acquire building-supply distributor GMS for $4.3 billion, following last year’s $18.25 billion acquisition of SRS. It expects the GMS deal to boost earnings within the first year after closing.
