Home Depot Inc
Q1 2025 Earnings
Excludes $139 million in acquired intangible asset amortization ($87 million related to SRS acquired June 18, 2024), adding $0.14 per share before a $0.03 per share tax benefit offset
Market Reaction
S&P 500 over the same 30 days: +1.23%.
Did HD Beat Earnings? Q1 2025 Results
Home Depot delivered a mixed first quarter for fiscal 2025, beating revenue expectations while falling just short on the bottom line, as the SRS Distribution acquisition continued to reshape the company's financial profile. Total sales climbed 9.4% year over year to $39.86 billion, clearing the $39.25 billion consensus estimate by 1.55%, though the headline growth masked a 0.3% decline in comparable sales on a total company basis. Adjusted diluted EPS of $3.56 missed the $3.59 consensus by 0.81%, weighed down by $139 million in acquired intangible asset amortization tied largely to the June 2024 SRS deal, along with a 26.8% surge in interest expense from acquisition-related debt. SRS itself contributed $2.6 billion in quarterly revenue, making it the dominant growth engine even as the soft housing market and elevated interest rates continued to suppress organic demand. The company reaffirmed its full fiscal 2025 outlook, projecting roughly 2.8% total sales growth and approximately 1.0% comparable sales growth, with adjusted diluted EPS expected to decline around 2% from last year's $15.24 base. Notably, management signaled no intention to raise prices in response to tariffs, leaning instead on its sourcing scale to protect consumers.
- Continued customer engagement across smaller projects and spring seasonal events
- U.S. comparable sales increased 0.2% while total company comparable sales declined 0.3%
- Customer transactions increased 2.1% to 394.8 million
- Average ticket was essentially flat at $90.71
- SRS Distribution acquisition contributed to 9.4% total sales growth
- Foreign exchange rates negatively impacted total company comparable sales by approximately 70 basis points
“Our first quarter results were in line with our expectations as we saw continued customer engagement across smaller projects and in our spring events.”
Home Depot CEO, on the earnings call
Forward Guidance & Outlook
The Home Depot reaffirmed its fiscal 2025 guidance (52-week year vs. 53-week fiscal 2024): total sales growth of approximately 2.8%, comparable sales growth of approximately 1.0%, approximately 13 new stores, gross margin of approximately 33.4%, operating margin of approximately 13.0% (adjusted ~13.4%), tax rate of approximately 24.5%, net interest expense of approximately $2.2 billion, diluted EPS declining approximately 3% from $14.91 in fiscal 2024, adjusted diluted EPS declining approximately 2% from $15.24 in fiscal 2024, and capital expenditures of approximately 2.5% of total sales. Adjusted guidance excludes an expected after-tax impact of approximately $0.40 from acquired intangible asset amortization and approximately 40 basis points of operating margin impact.
HD YoY Financials
Figures from SEC filings and company reports. Not investment advice.