How did Home Depot's cost management evolve in 2025?

Home Depot's cost management in 2025 was characterized by a focus on strategic investments and operational improvements to enhance efficiency and profitability, despite facing macroeconomic challenges.

1. **Investments in Digital Technologies**: Home Depot has been integrating its physical and online sales platforms to create a seamless shopping experience. This omnichannel approach has allowed customers to order online and pick up in-store or curbside.
2. **Acquisitions to Enhance Capabilities**: The company's acquisition of SRS, a leading residential specialty trade distribution company, is expected to accelerate growth with professional customers.
3. **Store Expansion and Optimization**: Home Depot opened new stores in the U.S., Canada, and Mexico to expand its physical presence and alleviate pressure on high-volume locations.
4. **Financial Highlights**: Despite a slight decrease in operating income and net earnings, the company maintained a gross profit margin of 33.4% for both fiscal 2024 and fiscal 2023, attributed to lower transportation costs and reduced shrink within the Primary segment.
5. **Dividend and Shareholder Returns**: Home Depot invested $3.5 billion in capital expenditures during the fiscal year and returned $8.9 billion to shareholders in the form of cash dividends.
6. **Challenges and Risks**: The company faced challenges such as broader market pressures impacting its comparable sales, which grew by a modest 1.3% in the U.S. and 0.8% overall.

In conclusion, Home Depot's cost management in 2025 was marked by a combination of strategic investments, operational improvements, and disciplined financial management. These efforts have positioned the company to navigate the challenges in the home improvement industry and maintain profitability.