🔹 Revenue: $45.3B (Est. $45.44B) 🔴; UP +4.9% YoY
🔹 Adj. EPS: $4.68 (Est. $4.72) 🔴; UP +0.2% YoY
🔹 Net Income: $4.55B; DOWN -0.2% YoY
🔹 Comp Sales: +1.0% (Est. +1.39%) 🔴; vs. -3.3% YoY
🔹 U.S. Comp Sales: +1.4% (Est. +1.55%) 🔴
🔹 Big-Ticket Transactions (> $1k): UP +2.6% YoY
🔹 12 of 16 merchandising departments posted YoY sales gains
🔸 This is the first HD earnings miss on both revenue and EPS since 2014.
FY25 Guide:
🔹 Sales growth: +2.8% (Est. +2.8%) 🟢
🔹 Comp sales: +1.0% (Est. +1.08%) 🟡
🔹 Operating margin: ~13.0% (Est. 13.3%) 🔴
🔹 Adj. operating margin: ~13.4%
🔹 Diluted EPS: DOWN ~3% from FY24 ($14.91)
🔹 Adj. EPS: DOWN ~2% from FY24 ($15.24)
🔹 Gross margin: ~33.4%
🔹 Tax rate: ~24.5%
🔹 Net interest expense: ~$2.2B
🔹 Capex: ~2.5% of sales
Other Metrics
🔹 Merchandise Inventories: $24.84B (Est. $24.58B) 🟡
🔹 Avg. Ticket: $90.01; UP +1.2% YoY
🔹 Comparable Customer Transactions: DOWN -0.4% YoY
Management Commentary
🔸 CEO Ted Decker: “Momentum that began in the back half of last year continued… customers engaged more broadly in smaller home improvement projects.”
🔸 CFO (via CNBC): “Y/Y sales trends improved in each month of the quarter — comps were +0.3% in May, +0.5% in June, and +3.3% in July.”