Home Depot Exceeds Earnings Estimates Amid Stagnant Housing Market
Home Depot (HD) reported second-quarter results that beat Wall Street's expectations, with adjusted earnings of $4.92 per share and revenue rising to $47.86 billion year-over-year. The company maintained its full-year outlook for sales growth between 2.5% and 4.5%, as well as up to 4% in adjusted EPS growth despite a sluggish housing market. Executives described the current housing environment as 'frozen,' with consumers hesitant about major home improvement projects due to high costs. To adapt, Home Depot is focusing on professional contractors and smaller DIY purchases while launching an express delivery service for faster product access across its stores. The move aims to compete more effectively against Amazon (AMZN) and Walmart (WMT). The company also announced leadership changes as CEO Ted Decker takes a medical leave of absence, with CFO Richard McPhail and senior executive Ann-Marie Campbell temporarily splitting his duties.
Topics: Home Depot housing market Q2 earnings