The Home Depot Reports Q1 2025 Results; Reaffirms Full-Year Outlook Despite EPS Decline

The Home Depot (NYSE: HD) reported first quarter fiscal 2025 sales of $39.9 billion, up 9.4% from Q1 2024. Despite the top-line growth, comparable sales slipped 0.3%, with U.S. comps rising 0.2%. Net earnings for the quarter declined 4.6% to $3.4 billion, or $3.45 per diluted share, down from $3.63 a year ago.

Adjusted diluted EPS was $3.56, also down from $3.67 in the same period last year. Foreign exchange pressures reduced comparable sales by approximately 70 basis points.
CEO Ted Decker noted solid customer engagement in spring categories and small projects, praising store readiness and associate performance.

Key Financial Highlights (GAAP):
• Net sales: $39.9B (+9.4%)
• Gross profit: $13.5B (+8.3%)
• Operating income: $5.1B (+1.1%)
• Net earnings: $3.43B (-4.6%)
• Diluted EPS: $3.45 (-5.0%)
• Adjusted EPS: $3.56 (-3.0%)
• Operating margin: 12.9% (down from 13.9%)

Balance Sheet (as of May 4, 2025):
• Total assets: $99.2B
• Total liabilities: $91.2B
• Stockholders’ equity: $8.0B
• Long-term debt: $47.3B

Cash Flow:
• Operating cash flow: $4.3B (down from $5.5B)
• Investing outflow: $931M
• Financing outflow: $3.76B

FY 2025 Guidance (unchanged):
• Total sales growth: ~2.8%
• Comparable sales growth: ~1.0%
• Adjusted EPS decline: ~2% (from $15.24 in FY 2024)
• Capital expenditures: ~2.5% of total sales
• Gross margin: ~33.4%
• Adjusted operating margin: ~13.4%

The company continues to navigate a shifting consumer environment, with modest comp sales and bottom-line pressure driven partly by increased operating costs and amortization of intangible assets related to acquisitions like SRS. However, leadership expressed confidence in execution and reiterated its full-year outlook.