Overview
- The Home Depot reported $41.8 billion in sales and a 0.6% global comp increase in its first quarter, while GAAP net income fell to $3.3 billion ($3.30 per share) on May 19.
- Management reaffirmed full-year guidance calling for total sales growth of 2.5%–4.5% and comparable sales of flat to 2.0% while still expecting lower adjusted EPS for the year.
- Profit margins remain under pressure as adjusted EPS declined versus a year ago and the company cited softer demand, cost headwinds, and weather-driven weakness in late April.
- Analysts have trimmed price targets and grown cautious about near-term catalysts, with DA Davidson and RBC lowering their targets after the earnings release.
- Home Depot is accelerating its push into the professional contractor market through large acquisitions such as SRS and GMS to build recurring revenue and offset normalized DIY spending, a shift that will shape sales mix and integration risks to watch next.