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Home Depot (HD) released its first quarter earnings results, with revenue climbing year-over-year to $39.86 billion (vs. estimates of $39.29 billion) while net earnings per share fell to $3.56 (just below estimates of $3.59 per share). Same-store sales declined by 0.3%, more than the 0.2% loss that was expected.
Yahoo Finance senior retail reporter Brooke DiPalma breaks down the home improvement retailer's reaffirmed 2025 guidance and how it sees itself navigating the Trump administration's tariff policies.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
Well Home Depot reporting mixed first quarter results, revenue topping estimates up more than 9% from a year ago, but earnings falling short of expectations. Still the home improvement retailer reaffirming its full year forecast. Yahoo finances Brook DePalma here with the biggest takeaways from the earnings report, Brook. What are you looking at?
Good morning. Well certainly Home Depot reported this mixed quarter, but investors are saying this was actually better than what they had ultimately feared here. The company also reiterating how it plans to handle Trump tariffs. Wall Street also impressed with that. Taking closer look at the numbers here. That mixed earnings report did come in at revenue beating Wall Streets expectations. Just earnings per share coming in slightly lower. Now executives said that these results were in line with what they had expected, but they did see customers engage less around larger projects and ultimately, uh they also saw customers engage with smaller projects rather. Taking closer look at same source sales growth after eight consecutive quarters of negative sales growth. Back in Q4 the company posted positive same source sales growth. Now this quarter in Q1 we're seeing that reverse. We're seeing that turn negative. The company ultimately alluding that to negative weather, ultimately TD Cowen saying in a note that they were encouraged once again by that better than feared same source sales decline. Also, the company reiterated full year guidance providing some optimism to the street here. Now many on the street are also thinking that hey, Home Depot is actually well positioned to handle to handle President Trump's tariffs here. Some key takeaways that we're hearing on the call right now from Home Depot this morning is that more than 50% of purchases are sourced from here in the US. They also said that in 12 months no single country outside of the US will represent more than 10% of their purchases. And the key factor here somewhat different than what we heard from Walmart last week is that they have no plans to increase prices because of President Trump's tariffs. That's certainly providing optimism here on the street.
Yeah, Brook just about 30 seconds left, but that seems to be the sticking point when it comes to this print in terms of the analyst notes that I'm seeing crossing the wire here. How is Home Depot able to do that? What can you tell us about why they're able to not raise prices off the back of tariffs?
Well, what they're saying that they're able to do here is really work with their vendors, saying that they have a strong relationship with their suppliers and they're really able to mitigate the costs when it comes to that. Ultimately though they did say that they still saw inflation when it comes to lumber. Of course we know lumber mostly comes from Canada. That's you know, in negotiations right now. So it's sort of a wait and see, but they're saying here they have no plans to raise prices this year. Of course so much up in the air still when it comes to tariffs.
Yeah, and so interesting to hear them couple that with keeping their guidance as well. Brook thank you so much. Really appreciate you.
