Shares of The Dwelling Depot (NYSE: HD) stayed pink on Monday. The inventory has gained 4% prior to now month. The house enchancment retailer is scheduled to report its earnings outcomes for the second quarter of 2025 on Tuesday, August 19, earlier than market open. Right here’s a take a look at what to anticipate from the earnings report:
Income
Analysts are projecting income of $45.4 billion for Dwelling Depot within the second quarter of 2025, which signifies a development of 5% in comparison with the identical interval a yr in the past. Within the first quarter of 2025, gross sales elevated 9.4% year-over-year to $39.9 billion.
Earnings
The consensus estimate for Q2 2025 earnings per share is $4.70. This compares to adjusted EPS of $4.67 reported in Q2 2024. In Q1 2025, adjusted EPS amounted to $3.56.
Factors to notice
Dwelling Depot could be anticipated to learn from demand for spring-related initiatives in addition to smaller residence enchancment initiatives. Nevertheless, the stress on bigger discretionary initiatives is prone to have continued within the present surroundings. In Q1, big-ticket comp transactions, or these over $1,000, have been up 0.3% YoY however engagement in bigger initiatives like kitchen and tub remodels remained comfortable.
The corporate is anticipated to proceed to see energy within the Professional phase. Final quarter, Professional comp gross sales outpaced the DIY phase. The acquisition of SRS and the continued investments in its shops to fulfill the wants of Professional prospects are anticipated to yield advantages for HD. The getting old housing inventory, which would require continued upkeep and updates, can also be an element that can profit the retailer.
Dwelling Depot’s international sourcing technique, beneath which over 50% of its purchases are sourced within the US, and its efforts in diversifying its international provide chain, have given it immense sourcing flexibility within the present commerce surroundings. Towards this backdrop, the corporate had deliberate to retain its costs on the similar stage, anticipating alternative for share beneficial properties.
