US home improvement retailer Home Depot reported a 3.8% decline in net sales for Q4 2025, totaling $38.2bn. Net earnings were $2.57bn, down from $3bn in the previous year. Comparable sales increased 0.4% overall and 0.3% in the US, with a 13-week reporting period. Gross profit decreased 4.4% to $12.46bn.

Operating income dropped 14.4% to $3.84bn in Q4, with earnings before income taxes declining 15.2% to $3.29bn. Diluted earnings per share were $2.58, down from $3.02 a year earlier. Adjusted diluted earnings per share were $2.72, reflecting a 14-week effect from fiscal 2024.

For FY25, Home Depot’s net sales increased 3.2% to $164.68bn. Cost of sales rose 3.4% to $109.81bn, with gross profit growing 2.9% to $54.86bn. Operating income decreased 3% to $20.89bn, and net earnings declined 4.4% to $14.15bn. The board approved a 1.3% increase in the quarterly dividend.

Home Depot expects total sales to grow 2.5% to 4.5% in FY26, with comparable sales ranging from flat to 2%. The retailer plans to open 15 new stores, with a gross margin of 33.1%. Operating margin is forecast at 12.4% to 12.6%, and diluted earnings per share growth ranging from flat to 4%.

Despite lower profitability in Q4, Home Depot outlined moderate growth expectations for fiscal 2026. Adjusted diluted earnings per share are projected to increase by flat to 4%, with capital expenditure planned at 2.5% of total sales. The company reported weaker Q4 profit but increased its dividend.

Read more at Yahoo Finance: Home Depot reports weaker Q4 profit, lifts dividend