What guidance did The Home Depot's management provide for the next earnings period?

What were the key takeaways from The Home Depot's earnings call?

What is The Home Depot's gross profit margin?

What factors drove the changes in The Home Depot's revenue and profit?

What does The Home Depot do and what are its main business segments?

What is the market's earnings forecast for The Home Depot next quarter?

What is the revenue and EPS growth rate for The Home Depot year over year?

Did The Home Depot beat or miss consensus estimates last quarter?

- **Revenue Growth**: Q3 sales +3% YoY ($41.4B), but comps (+0.2%) miss due to storm absence and housing pressure.
- **Margin Headwinds**: FY2025 adjusted EPS expected to decline 5% YoY, driven by GMS integration costs and storm impact.
- **Strategic Moves**: GMS acquisition to boost Pro segment; online comps +11% YoY, faster delivery driving engagement.
- **Risks**: Housing market softness and consumer uncertainty weigh on home improvement demand; 2024 storm-related sales to lap in Q4.

**【CEO Summary Section】**
- Q3 2025 sales: $41.4 billion (+3% YoY), comps +0.2% (U.S. +0.1%). Missed expectations due to lack of storms and housing pressure.
- Acquired GMS, a specialty building products distributor, to enhance Pro segment capabilities.
- Underlying demand stable sequentially, but storm-impacted categories (e.g., roofing, plywood) underperformed.
- Reiterated focus on controlling costs and investing in customer value proposition.

**【CFO Financial Commentary】**
- Adjusted EPS: $3.74 (-1.1% YoY). GAAP EPS: $3.62 (-1.4% YoY).
- Gross margin: 33.4% (flat YoY). Operating margin: 12.9% (-0.6% YoY) due to GMS transaction costs and storm impact.
- Inventory: $26.2 billion (+9.1% YoY), driven by investments in faster delivery and GMS integration.
- FY2025 guidance: Total sales +3%, comps slightly positive, adjusted EPS -5% YoY.

**【Q&A Highlights】**
- **Storm Impact**: Q3 comps -1.5% in October due to lack of storms; Q4 will lap 14 weeks of storm-related sales from 2024.
- **Margin Dilution**: GMS adds ~20bps to operating margin dilution; SRS adds ~40bps, offset by ~50bps from transaction costs.
- **Pro Growth**: SRS comps flat Q3, but taking share in roofing market; GMS expected to contribute $2 billion in FY2025 sales.
- **Consumer Trends**: Housing turnover at 40-year low (2.9%), home prices adjusting in key markets, but DIY demand resilient.
- **Cross-Selling**: SRS and GMS teams sharing leads, e.g., roofing sales to SRS and drywall to GMS, driving incremental Pro sales.


The Home Depot, Inc. (HD) Q3 2026 Earnings Call Transcript

- **Q2 Growth**: $45.3B sales (+4.9% YoY), U.S. comps +1.4%, driven by 12/16 merchandising departments posting positive comps.
- **Strategic Acquisitions**: GMS acquisition to expand Pro ecosystem with 1,200+ locations, enhancing drywall, ceilings, and steel framing capabilities.
- **Pro Momentum**: +2.6% comp growth in projects over $1,000, +10% spend lift from Pro Trade credit adoption.
- **Guidance**: FY25 sales +2.8%, flat gross margin at 33.4%, EPS decline ~3% (53wk vs. 52wk basis).
- **Risks**: Larger remodeling projects deferred due to economic uncertainty, inventory turns down 0.3x YoY.
- **Tariffs & Pricing**: 50%+ of products domestically sourced; reduced garden promotions to offset tariff impacts.
- **Halloween Strong**: Record sneak preview for 2025 Halloween assortment, driving seasonal engagement.

**【CEO Summary Section】**
- Q2 total sales: $45.3 billion (+4.9% YoY), U.S. comps +1.4%, Canada/Mexico comps positive in local currency.
- Strategic acquisitions: GMS to expand SRS's distribution network to 1,200+ locations, enhancing Pro ecosystem capabilities.
- Pro ecosystem momentum: 12/16 merchandising departments posted positive comps, strongest performance in 2+ years.
- Challenges: Larger remodeling projects deferred due to economic uncertainty, though Pros report customers delaying vs. canceling projects.
- Guidance reaffirmed: FY25 sales growth ~2.8%, comp growth ~1%, flat gross margin at 33.4%.

**【CFO Financial Commentary】**
- Q2 GAAP EPS: $4.58 (-0.4% YoY), Non-GAAP EPS: $4.68 (+0.4% YoY).
- Operating margin: 14.5% (-60bps YoY), adjusted operating margin: 14.8% (-50bps YoY).
- Inventory: $24.8 billion (+7.8% YoY), turns: 4.6x (-0.3x YoY).
- Capital allocation: $915M in capex, $2.3B in dividends, ROIC: 27.2% (-460bps YoY).
- FY25 outlook: EPS decline ~3% (53wk vs. 52wk basis), adjusted EPS flat YoY.

**【Q&A Key Highlights】**
- **Weather Impact**: July comps +3.1% YoY due to favorable North weather; Q2 comps improved sequentially from -0.3% in May to +3.3% in July.
- **Interest Rates**: Lower rates could unlock larger projects; current #1 customer concern is economic uncertainty.
- **Pro Ecosystem**: On-time delivery rates improving, Pro Trade credit adoption driving +10% spend lift.
- **GMS Rationale**: Adjacent vertical to SRS with ~$1B+ TAM, seamless integration into SRS's specialty distributor model.
- **Tariffs & Pricing**: 50%+ of products domestically sourced; promotional activity reduced in garden categories to offset tariff-driven price increases.
- **Halloween Lineup**: Record-breaking sneak preview for 2025 Halloween assortment, including Skelly & Barkley return.
- **FX Impact**: Q2 total company comps negatively impacted by 40bps; FY25 guidance excludes FX assumptions.


The Home Depot, Inc. (HD) Q2 2025 Earnings Conference Call Transcript

- **Topline resilience**: Q1 sales +9.4% YoY, U.S. comps +0.2% despite $275M FX headwinds.
- **Sourcing transformation**: >50% of purchases now U.S.-sourced, diversifying away from China.
- **Digital momentum**: Online sales +8% YoY, Magic Apron AI tool boosting conversion.
- **Pro ecosystem expansion**: KILZ primer exclusive deal, SRS trade credit program onboarding thousands of Pros.
- **FY2025 guidance reaffirmed**: Sales +2.8%, comp +1%, adjusted EPS flat on 52-week basis.

**【CEO Summary Section】**
- Q1 2025 total sales: $39.9 billion (+9.4% YoY), U.S. comps +0.2% despite unfavorable weather and FX headwinds.
- Global sourcing strategy: >50% of purchases now sourced in the U.S., aiming for no single country >10% of purchases within 12 months.
- Confidence in long-term home improvement market: 55% of homes >40 years old, record home equity levels driving DIY and Pro projects.

**【CFO Financial Commentary】**
- Gross margin: 33.8% (-35bps YoY) due to mix changes from SRS acquisition.
- Operating expenses: 20.9% of sales (+70bps YoY), driven by SRS integration and legal costs.
- Adjusted EPS: $3.56 (-3% YoY), in line with expectations.
- FY2025 guidance: Sales growth 2.8%, comp +1%, gross margin 33.4%, operating margin 13.0%.

**【Merchandising & Online Performance】**
- 6 of 16 merchandising departments posted positive comps (appliances, plumbing, outdoor garden, electrical, building materials).
- Online sales +8% YoY, Magic Apron AI tool driving digital engagement.
- New KILZ primer exclusive agreement with BEHR to strengthen Pro ecosystem.

**【Q&A Highlights】**
- **Demand trends**: Smaller projects (gardening, home repairs) resilient, larger remodels constrained by high interest rates.
- **SRS integration**: SRS sales $2.6B in Q1, on track for mid-single-digit growth; trade credit program onboarding thousands of Pros.
- **Inventory**: +15% YoY due to SRS addition, no pull-forward; in-stock levels at record highs.
- **Pricing strategy**: No broad-based price increases; leveraging productivity to offset tariffs.
- **Tariffs impact**: >50% of purchases now U.S.-sourced, diversification reducing risk of tariff-related price hikes.

The Home Depot, Inc. (HD)-20 May 25-2026 Q1 Earnings call transcript

- **Topline beat**: FY2024 sales $159.5B (+4.5%), Q4 adj. EPS $3.13 (+9.4%). 
- **Pro strategy success**: $1B+ incremental pro sales, SRS organic 2025 growth mid-single digits. 
- **Delivery innovation**: fastest speeds ever, online sales +9% YoY. 
- **2025 guidance**: +2.8% sales, +1% comps, adj. EPS -2%. 
- **Risk factors**: macro uncertainty, SRS mix dilution (40bps). 


**【CEO Opening Remarks】**
- FY2024 total sales: $159.5B (+4.5% YoY), U.S. comp sales: -1.8% YoY. Q4 adj. EPS: $3.13 (+9.4% YoY). 
- Key drivers: 15/19 U.S. regions with positive comps, Canada/Mexico growth in local currency. 
- Strategic priorities: interconnected shopping experience, pro wallet share growth, new store openings. 
- SRS acquisition: $6.4B in 7 months, organic 2025 sales growth expected mid-single digits. QuoteCenter sales tripled post-integration. 
- 2025 outlook: +2.8% total sales, +1% comp sales, adj. EPS -2% YoY. 13 new stores planned. 

**【Ann-Marie Campbell - Pro Growth】**
- Pro comp sales positive across all cohorts. $1B+ annualized incremental sales in 17 markets. 
- Investments: FDC network expansion, dedicated sales teams, QuoteCenter integration. 
- Future focus: delivery experience, trade credit, SRS cross-sell opportunities. 

**【Billy Bastek - Merchandising Performance】**
- Q4: 10/16 departments positive, appliances, lumber, power tools lead. Online sales +9% YoY. 
- Key trends: customers trading up for innovation, softness in large remodels. 
- Delivery improvements: fastest speeds ever, same-day/next-day options. 
- Spring lineup: battery-powered tools, expanded live goods assortment. 

**【Richard McPhail - Financial Highlights】**
- Q4: $39.7B sales (+14% YoY), 0.8% comp sales. FY2024: 33.4% gross margin, 13.8% adj. operating margin. 
- 2025 guidance: 33.4% gross margin, 13.4% adj. operating margin. 
- CapEx: 2.5% of sales ($~900M). Dividend: +2.2% to $2.30/Q. 
- Risks: macro uncertainty, higher rates constraining large projects. 

**【Q&A Key Takeaways】**
- **Macro outlook**: housing turnover near 40-year low, but customer equity ~$110K. 
- **SRS impact**: 40bps mix dilution, but 2025 organic +mid-single digits. 
- **Margin leverage**: ~10bps per comp point, offset by SRS mix. 
- **Weather impact**: Q1 2025 comps negatively affected by extreme weather. 
- **Share gains**: 1% comp assumes flat market; core +SRS driving growth. 


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