Home Depot (NYSE:HD) reported revenue rose 4.8% year-over-year to $45.3 billion during the company’s second quarter. Comparable sales increased 1.0% for the quarter that ended on August 3 to miss the consensus expectation for an increase of 1.4%. During the quarter, foreign exchange rates negatively impacted total company comparable sales by approximately 40 basis point.
Comparable customer transactions fell 0.4% year-over-year, while comparable average ticket for customers was up 1.4%. Total customer transactions fell 0.9% to 446.8 million. Total average ticket was up 1.2% to $90.01.
Notably, CFO Richard McPhail said in an interview that consumers are increasingly taking on small projects. “We are seeing larger projects remain on hold as rates remain elevated and economic uncertainty persists,” he updated.
Home Depot (NYSE:HD) reported adjusted operating income for the quarter was $6.69 billion and an adjusted operating margin of 14.8% vs. 15.3% a year ago. Cost of sales increased 4.8% during the quarter to $30.1 billion. Adjusted non-GAAP EPS was reported at $4.68 vs. $4.69 consensus and $4.67 a year ago.
“Our second quarter results were in line with our expectations. The momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects,” stated CEO Ted Decker. “Our teams are executing at a high level, and we continue to grow market share,” he added.
Looking ahead, Home Depot (HD) expects total sales to increase approximately 2.8% in FY25 and EPS to fall about 2%.
Shares of Home Depot (HD) were down 1.2% in premarket trading on Tuesday. Rival Lowe’s (LOW) shed 0.5%.