From Financial Modeling Prep: 2025-02-26 01:51:19

Home Depot (NYSE:HD) reported strong Q4 earnings, with net sales of $39.70 billion (+14% YoY) and adjusted EPS of $3.13, beating estimates. Sales were boosted by an extra week in the quarter, contributing ~$2.5 billion.

However, Home Depot’s 2025 outlook fell short of expectations, forecasting 1% comparable sales growth, below Bloomberg’s 1.65% estimate. Higher interest rates have dampened renovation spending, with uncertainty over potential tariffs adding to inflation concerns.

The market is sensitive to interest rates, as higher borrowing costs have impacted home improvement demand. The Fed’s cautious approach to rate cuts adds further uncertainty to the sector.

Despite strong Q4 results, Home Depot’s muted 2025 outlook indicates ongoing macroeconomic challenges in the home improvement sector. The retail industry continues to face headwinds, with concerns over inflation and Fed rate decisions affecting consumer spending.



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