What caused HD's Q2 2025 earnings to beat expectations?

The Home Depot's Q2 2025 earnings exceeded expectations due to several key factors: 1. **Revenue Growth**: The company reported a total revenue of $43.18 billion for the quarter, which surpassed street forecasts. This growth can be attributed to Home Depot's strategic initiatives and the overall increase in home improvement spend despite pressure on large remodeling projects. 2. **Strategic Initiatives**: Home Depot's focus on the professional segment of the market, including investments in digital tools and process optimizations, has contributed to its resilience. The company's interconnected shopping experience and supply chain investments are also key competitive advantages. 3. **Digital Integration**: The continued enhancement of its omnichannel capabilities has likely played a role in attracting and retaining customers. The company's digital sales increased by 4% year-over-year, indicating a growing reliance on online platforms to complement its physical stores. 4. **Same-Store Sales Increase**: After eight quarters of declining same-store sales, Home Depot reported a 0.8% increase in fiscal Q4 and a 1.3% jump in the U.S. The number of transactions rose by 0.6%, while the average ticket size edged up 0.2%. These figures suggest that the company's efforts to boost sales in existing stores are paying off. In summary, Home Depot's Q2 2025 earnings beat expectations due to strong revenue growth, strategic initiatives, digital integration, and an increase in same-store sales. These factors collectively contribute to the company's robust financial performance and market leadership in the home improvement retail sector.