Home Depot delivered steady results in Q2 2025, with signs of resilience even amid macroeconomic headwinds and high borrowing costs. Here’s what stood out for home improvement brands:
- Revenue Growth with Refined Performance
Sales totaled $45.28 billion, up 4.9% year-over-year. Comparable store sales rose 1% overall, with 1.4% growth in U.S. stores, a reassuring sign of consistent core demand.
- Slight Miss on Earnings but Strong Execution
Adjusted earnings per share came in at $4.68, just shy of forecasts. CEO Ted Decker highlighted continued strength in smaller home improvement projects, even as larger projects remain challenged by economic uncertainty.
- Stock Reaction and Forward Outlook
Despite the earnings miss, Home Depot maintained its full-year guidance, expecting 2.8% total sales growth and a 2% drop in adjusted EPS. Investors appeared encouraged, with shares rising around 1–1.5% in premarket trading.
Why it Matters for Brands
- Smaller project demand remains strong: For brands, that means continued traction in tools, outdoor equipment, décor and easy-to-install products.
- Opportunity in Pro and digital channels: Even as remodels delay, Home Depot’s investments in Pro services and tech infrastructure support growth for suppliers with innovation and service-oriented solutions.
- Confidence in spending: Maintaining guidance signals management’s confidence in strategy and execution amid broader uncertainty.
Porchlight’s Perspective
At Porchlight, we see Home Depot’s Q2 results as an important signal for suppliers. Shoppers may be cautious about larger remodels, but they are still actively engaged in smaller, achievable projects that deliver impact and value. For brands, this means it’s the perfect time to lean into product education, creative merchandising and digital storytelling to inspire confidence. Suppliers that align with Home Depot’s focus on Pro services and seamless digital integration will be well-positioned to capture growth in the months ahead.
Additional Resources
The Home Depot’s Q2 2025 Earnings Report: https://corporate.homedepot.com/news/earnings/home-depot-announces-second-quarter-2025-earnings