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Home Depot Beats Expectations Despite Profit Miss, Shares Surge
19 Aug
Summary
- Q2 sales up nearly 5% year-over-year
- U.S. comparable-store sales rise 1.4%, best in nearly 3 years
- Earnings per share miss analyst forecasts by a narrow margin
On August 19, 2025, home improvement retailer Home Depot reported its second-quarter fiscal 2025 results, delivering a mixed picture that nonetheless sent its stock sharply higher. The company posted $45.28 billion in sales, up nearly 5% year-over-year, though its profits missed analyst forecasts by a narrow margin.
Despite the earnings miss, Home Depot's U.S. comparable-store sales rose 1.4%, the best performance in nearly three years, showcasing the retailer's resilience amid weaker customer traffic and economic uncertainty. Investors shrugged off the profit shortfall, with HD stock surging more than 4% to $410.50 as they focused on the company's steady full-year guidance, resilient contractor demand, and optimism that future interest rate cuts could reenergize the home improvement market.
While Home Depot warned that tariffs could soon raise consumer prices, the company reiterated that it would absorb these pressures rather than passing them on to shoppers already grappling with higher housing and financing costs. This positioning as a stabilizer in an inflationary environment has bolstered investor confidence in the retailer's ability to navigate the current macroeconomic challenges.
