Home Depot exceeded Wall Street expectations for its fiscal second quarter, reporting stronger sales and earnings as shoppers gravitated toward smaller home improvement projects through the summer months.
Revenue for the Atlanta-based retailer rose to $47.86 billion, up from $45.28 billion a year earlier and ahead of the $47.24 billion analysts had projected in a FactSet survey. Global comparable store sales climbed 1.7%, while U.S. same-store sales rose 1.3%.
The company earned $4.77 billion, or $4.79 per share, for the three months ended August 2, compared with $4.55 billion, or $4.58 per share, in the same period last year. Excluding one-time items, earnings reached $4.92 per share, well above the $4.73 per share Wall Street had anticipated.
“Our second quarter results exceeded our expectations,” Chief Financial Officer Richard McPhail said. “We saw broad based demand across the business as customers continued to engage in smaller projects.”
The spending pattern reflected a cautious consumer. Customer transactions slipped 1% during the quarter, but the average receipt rose to $92.50 from $90.01 a year earlier, indicating shoppers spent more per visit even as foot traffic softened.
Home Depot reaffirmed its full-year guidance, signaling confidence despite persistent headwinds in the broader housing sector. The company’s steady performance echoes rival trends, with Lowe’s holding its own annual outlook on the strength of professional contractor demand offsetting weaker do-it-yourself spending.
The results come as the U.S. housing market remains in a slump that dates back to 2022, when mortgage rates began climbing from the historic lows that had fueled a homebuying frenzy earlier in the decade. Elevated borrowing costs have discouraged homeowners from moving or undertaking large renovations.
While the average long-term U.S. mortgage rate fell slightly last week for the first time in six weeks, it remains higher than a year ago, keeping pressure on retailers tied to housing activity. The trend has been reflected in a broader slowdown in home sales as high rates dampen demand.
The shift toward smaller, lower-cost projects has helped Home Depot maintain momentum while big-ticket remodeling remains subdued. The company is betting that this steady, incremental spending will carry it through until interest rates ease and larger renovation activity returns.