From Yahoo Finance: 2025-05-20 06:04:00

Home Depot investors disappointed as the home improvement chain’s mixed earnings reflect consumers hesitant on renovation projects due to tariffs. Revenue rose 9.4% to $39.86 billion, missing Wall Street’s $39.29 billion expectation. Net earnings fell 4.95% to $3.45 versus the expected $3.59. Same store sales dropped 0.3%, reversing Q4 growth. CEO Ted Decker remains optimistic but uncertain.

Tariff concerns weigh on Home Depot and Lowe’s as uncertainty affects consumer decisions on renovation projects. Reciprocal tariffs suspended, but rates higher than historical levels. Homebuilder confidence declines, sales expectations low. Rising Treasury yields post-Moody’s downgrade spell higher financing costs for home improvement projects and homebuying, further challenging the sector.

Home Depot reiterates guidance for fiscal year with net sales expected to grow 2.8% and same-store sales to increase by 1%. Tariff impacts have companies like Walmart warning of higher prices, affecting consumer demand. SW Retail Advisors president Stacey Widlitz notes cautious consumer spending. Analysts remain positive on Home Depot’s long-term prospects, citing its execution and potential in the pro customer market.



Read more at Yahoo Finance: Home Depot reports mixed earnings as it navigates Trump’s tariffs