The Home Depot Inc.
Here's what management highlighted on the earnings call about weather trends, Pro demand, and margin pressures shaping the rest of the year.
Weather Drives Outlook, Not Demand Recovery
Home Depot reported first-quarter sales of $41.8 billion, up 4.8% year over year, with comparable sales rising 0.6% overall and 0.4% in the U.S.
CEO Ted Decker said expectations for a stronger second-half performance are "solely driven by a return to normal storm activity," not improving consumer demand trends.
Management said weather weakened comparable sales during the final two weeks of April, while May trends normalized.
The company reiterated fiscal 2026 guidance for flat-to-2 % comparable sales growth and total sales growth of 2.5% to 4.5%.
Cost Pressures And Margin Impact Remain In Focus
Management said fuel, tariff, and commodity costs have shifted to a negative bias since last quarter, though potential tariff refunds could partly offset those pressures.
Adjusted diluted EPS declined to $3.43 from $3.56 a year earlier as operating margins continued to face pressure from the GMS acquisition.
Management did not provide a buyback timeline despite direct investor questions and instead emphasized the dividend as its primary shareholder return tool.
Pro Strategy And Execution Investments Continue
Home Depot continued to emphasize investments in Pro customers, including trade credit, delivery reliability, digital tools, and jobsite fulfillment, with Pro comps outperforming DIY again this quarter.
Management noted the $400 million cross-sell run rate consists mostly of guaranteed contracts, including SRS performing roofing work on Home Depot warehouses, with a target to double that figure in 2027.
The company said merchandising execution teams are now active in more than 1,000 stores. Management noted the teams are driving higher customer engagement across additional departments.
Home Depot also highlighted the Mingledorf acquisition and plans for more HVAC distribution bolt-on deals under SRS.
HD Price Action: Home Depot shares were up 0.65% at $301.76 at the time of publication on Tuesday. The stock is near its 52-week low of $296.88, according to Benzinga Pro data.
