Home Depot, Inc.

Solid Q2 operating performance vs. expectations (share gains in a tough housing backdrop) - Sales: $47.9B, +5.7% YoY; U.S. comps +1.3%, total company comps +1.7%. - Earnings: Adjusted diluted EPS $4.92 (vs. $4.68 last year, +5.1% YoY). Also cited DILUTED EPS (reported) $4.79. - Demand tone: customers engaged across smaller repair/maintenance and broader categories; pressure remains for larger discretionary projects and housing affordability.

Margin / cost story: tariff refunds helped timing; underlying gross margin stable but cost pressures persist - Tariff refunds: $685M reduced COGS in Q2 (out of $730M received); $45M of refunds remains in inventory and will flow through P&L as inventory turns. - Gross margin: 33.7%, +~25 bps YoY primarily due to the tariff benefit (partially offset by fuel/energy/input costs and acquisition mix). - Outlook on margin: company expects Q4 gross margin roughly flat vs last year; they reaffirm guidance because tariff benefits are expected to be offset by incremental cost pressure over the year.

Strategy execution: “core and culture,” frictionless connected experience, and faster delivery are key opportunities - Record store execution: strong on-shelf availability and associate enablement (technology tools). - Delivery acceleration (important growth engine): - Parcel in-stock deliveries: >65% same day/next day. - Express Delivery nationwide: launched for delivery on “tens of thousands” of products in ~3 hours or less (often <1 hour). - Big & bulky: delivery lead times down ~45% over 18 months; ~55% of big/bulky deliveries delivered within 2 days. - Pro momentum: Pro positive comp; Pro outperformed DIY and strength across multiple pro-heavy categories (portable power, decking, dimensional lumber, etc.). Company believes it’s improving “sticky” pro relationships.