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Investing.com -- Home Depot reported first quarter fiscal 2025 results that exceeded revenue expectations but fell short on earnings, while reaffirming its full-year outlook. The stock rose on Tuesday following the announcement.
The world’s largest home improvement retailer posted revenue of $39.86 billion, surpassing analyst estimates of $39.25 billion and representing a 9.4% increase YoY. However, adjusted earnings per share came in at $3.56, missing the $3.59 consensus estimate.
Comparable sales decreased 0.3% overall but increased 0.2% in the U.S. Foreign exchange rates negatively impacted total company comparable sales by approximately 70 basis points.
"Our first quarter results were in line with our expectations as we saw continued customer engagement across smaller projects and in our spring events," said Ted Decker, chair, president and CEO.
Home Depot (NYSE:HD) reaffirmed its fiscal 2025 guidance, projecting total sales growth of approximately 2.8% and comparable sales growth of about 1.0% for the comparable 52-week period. The company expects adjusted diluted earnings per share to decline approximately 2% from $15.24 in fiscal 2024.
The retailer plans to open approximately 13 new stores and maintains its capital expenditure forecast at about 2.5% of total sales for the year.
Meanwhile, Bloomberg reported that the retailer’s CFO said the company won’t raise prices due to tariffs.
Reacting to the results, Morgan Stanley (NYSE:MS) analysts said it is a "fine start to ’25 with Q1 largely down the middle and Q2 trends positive." They added: "We like HD and believe outperformance is more tied to ’26 and housing than what happens in ’25."
Meanwhile, Truist stated: "1Q appears to be a middle of the fairway shot for Home Depot, despite a weather-impacted Feb, constantly changing rhetoric out of DC and stubbornly-high mortgage rates."
Barclays (LON:BARC) also highlighted the challenges in the quarter, but stated that overall, it was a good quarter despite numerous external challenges such as weather, policy changes. "Weather was likely a factor earlier in the quarter, but exit rate commentary should be positive, and we believe healthy trends continued into Q2 to date," said the firm.