Home Depot, Inc.

Sales Growth and Comp Sales Performance: Home Depot reported total sales of $39.9 billion in Q1 2025, marking a 9.4% increase year-over-year (YOY). However, comparable sales declined by 0.3%, with U.S. comps slightly up by 0.2%. There were strong performances in the latter part of fiscal 2024 that carried over into Q1, although weather challenges and foreign exchange pressures negatively impacted results.

Adjusted Earnings Per Share (EPS) and Margins: Adjusted diluted EPS in Q1 was $3.56, down 3% from $3.67 in the prior year. Gross margin decreased by 35 basis points to 33.8%, primarily due to changes in product mix and the impact of the SRS acquisition. The operating margin decreased to 12.9%, and the operating expense as a percentage of sales increased to 20.9%, highlighting the challenges in maintaining profitability amidst rising costs.

Outlook and Guidance for FY 2025: The company reaffirmed its guidance for total sales growth of approximately 2.8% and comp sales growth of about 1%. There are expectations of positive engagement continuing through Q2, despite broader economic uncertainties. The effective tax rate is projected at around 24.5%, with anticipated diluted EPS decline of approximately 3% compared to FY 2024.