🔹 Revenue: $39.86B (Est. $39.27B) 🟢; +9.4% YoY
🔹 Adj EPS: $3.56 (Est. $3.59) 🔴; -3.0% YoY
🔹 S.S.S: -0.3% (Est. -0.2%) 🔴
🔸 Not raising prices because of tariffs
FY26 Guide:
🔹 Comparable Sales Growth: About +1.0% (Est. +1.15%) 🔴
🔹 Revenue Growth: About +2.8%
🔹 Operating Margin: ~13.0%
🔹 Adjusted Operating Margin: ~13.4%
🔹 Gross Margin: ~33.4%
🔹 Tax Rate: ~24.5%
🔹 Net Interest Expense: ~$2.2B
🔹 Adjusted EPS: Expected to decline ~2% from FY2024 ($15.24)
🔹 GAAP EPS: Expected to decline ~3% from FY2024 ($14.91)
🔹 Capital Expenditures: ~2.5% of total sales
🔹 New Store Openings: ~13
Q1 Comparable Sales:
🔹 U.S. Comp Sales: +0.2% (Est. -0.16%) 🟢
🔹 Total Comp Sales: -0.3% (Est. -0.2%) 🔴
🔹 FX impact: ~70bps negative to total comp sales
Other Key Q1 Metrics:
🔹 Adj OI: $5.27B; UP +2.7% YoY
🔹 Adj OM: 13.2% (Est. 13.3%) 🔴
🔹 Gross Margin: 33.8%
🔹 Customer Transactions: 394.8M; UP +2.1% YoY
🔹 Average Ticket Size: $90.71 (Flat YoY)
Strategic and Operational Updates:
🔸 Continued customer engagement in smaller projects and seasonal spring events
🔸 SRS acquisition contributed to amortization expense and long-term growth opportunities
🔸 2,350 total retail stores across the U.S., Canada, and Mexico
🔸 Workforce strength: Over 470,000 associates
🔸 Inventory levels: $25.76B vs. $22.42B YoY
CEO Ted Decker's Commentary:
🔸 "Our first quarter results were in line with expectations. We saw solid customer engagement and feel confident about store readiness and product assortment for the spring season."
🔸 CFO: Will not raise prices because of tariffs; More than half of what the company sells comes from the U.S.; We’ve seen the great level of customer engagement that we saw in April continue into the first few weeks of May
