Business
Home Depot stock rises 4% as retailer maintains full-year forecast
General view of a Home Depot store in Midtown Manhattan on February 26, 2025 in New York City.
Eduardo Munoz Alvarez | Corbis News | Getty Images
Home Depot stuck by its full-year outlook on Tuesday, even as the company came in slightly shy of Wall Street’s expectations for quarterly earnings and revenue.
The home improvement retailer reiterated that it expects full-year total sales to grow by 2.8% and comparable sales, which take out the impact of one-time factors like store openings and calendar differences, to rise about 1%.
However, it missed Wall Street’s earnings expectations for the second straight quarter.
Shares of Home Depot rose about 4% in early trading.
Here’s what Home Depot reported for the fiscal second quarter compared with Wall Street’s estimates, according to a survey of analysts by LSEG:
- Earnings per share: $4.68 adjusted vs. $4.71 expected
- Revenue: $45.28 billion vs. $45.36 billion expected
In the three-month period that ended Aug. 3, Home Depot’s net income was $4.55 billion, or $4.58 per share, down slightly from $4.56 billion, or $4.60 per share, in the year-ago period. Revenue rose almost 5% from $43.18 billion in the year-ago period. Adjusting for one-time items, including related to the value of intangible assets, Home Depot reported earnings of $4.68 per share.
The report is Home Depot’s first since May 2014 to fall short on both earnings and revenue expectations.
Home Depot’s results reflect that the company is still waiting for a greater pickup in home improvement activity, whether spurred on by higher housing turnover, lower mortgage rates or consumers’ own shift in mentality.
In an interview with CNBC, Chief Financial Officer Richard McPhail said the company continues to see the effects of a “deferral mindset” from homeowners, which began in roughly mid-2023.
Still, McPhail said, there are encouraging signs in the retailer’s business: Big-ticket transactions, which the company defines as over $1,000, rose 2.6% compared with the year-ago quarter. Twelve of its 16 merchandising departments posted year-over-year sales gains. And year-over-year sales trends improved in each month of the quarter, with comparable sales up 0.3% in May, 0.5% in June and 3.3% in July, he said.
“We absolutely saw momentum continue to build in our core categories throughout the quarter,” he said.
McPhail said Home Depot’s fiscal 2025 outlook does not factor in potential rate cuts by the Federal Reserve, which could spur borrowing for homebuying and bigger projects.
“We don’t embed any point of view on the rate environment changing, nor on the demand for large projects changing,” he said.
On the company’s earnings call, CEO Ted Decker said “some relief on mortgage rates, in particular, could help.” But he added that’s not the only factor on consumers’ minds when Home Depot surveys its customers and pros.
“The No. 1 reason for deferring the large project is general economic uncertainty,” he said. “That, you know, is larger than prices of projects, of labor availability, all the various things we’ve talked about in the past by a wide margin.”
Betting on the pros
As the real estate market remains sluggish and borrowing costs remain high, Home Depot has looked beyond the homeowners who come to its stores to buy kitchen appliances, cans of paint or other supplies for do-it-yourself projects. Home Depot acquired SRS Distribution, a company that sells supplies to roofing, landscaping and pool professionals, for $18.25 billion last year. It announced in June that it was buying GMS, a specialty building products distributor, for about $4.3 billion. The GMS deal is expected to close by the end of Home Depot’s fiscal year in late January, according to Home Depot.
McPhail said about 55% of Home Depot’s sales come from pros and about 45% comes from do-it-yourself customers, when including SRS.
Comparable sales increased 1% across the business and 1.4% in the U.S. during the fiscal second quarter. Home Depot said foreign exchange rates negatively impacted the company’s comparable sales by about 0.4%.
That comparable sales growth marks only the second quarter out of the last 11 that Home Depot has reported year-over-year improvement — marking its strongest performance in more than two years.
For the fiscal second quarter, McPhail said year-over-year sales on both the pro side and DIY side of the business grew. He declined to share percentage increases, but said those increases were “relatively in line with one another.”
Home Depot saw strength in categories that tend to be popular with pros, such as lumber, concrete and decking, said Billy Bastek, executive vice president of merchandising, on the company’s earnings call. On the do-it-yourself side of the business, seasonal products like grills and live goods from the gardening category did well, he said.
Online sales rose about 12% from the year-ago quarter, Bastek said. He attributed some of that to the company’s faster delivery speeds.
Tariffs have added uncertainty to the outlook for retailers, though. McPhail told CNBC in May that Home Depot did not plan to hike prices across its store, even as other retailers, including Walmart, warned that tariff-related costs would be too much to absorb.
Since May, however, U.S. tariff policies have changed. Higher tariffs began in early August on dozens of U.S. trading partners. Other major agreements remain in flux. President Donald Trump last week delayed higher U.S. tariffs on Chinese goods for another 90 days as negotiations continue.
McPhail told CNBC that Home Depot hasn’t changed its pricing approach. And, he said, most of its imported products sold in the quarter landed ahead of tariffs.
Home Depot’s customer base tends to be on stronger financial footing than U.S. consumers overall, which could help the company weather sustained higher costs. About 90% of its do-it-yourself customers own their own homes and the home pros who shop with Home Depot tend to get hired by homeowners.
Customer transactions across Home Depot’s website and stores fell in the quarter to 446.8 million compared with the 451 million in the year-ago period. Yet shoppers spent slightly more during those transactions, with the average ticket rising to $90.01 from an average ticket of $88.90 in the year-ago period. Those metrics exclude results from acquisitions SRS and HD Supply, the company said.
Home Depot’s shares ended Monday at $394.70. As of Monday’s close, the company’s shares are up roughly 1.5% so far this year. That trails the nearly 10% gain of the S&P 500 during the same period.
– CNBC’s Robert Hum contributed to this report.
Pritti MistryBusiness reporter, BBC News
FordThe first electric vehicles (EV) eligible for the £3,750 discount under the government’s grant scheme have been announced.
The Department for Transport confirmed Ford’s Puma Gen-E or e-Tourneo Courier would be discounted as part of plans to encourage drivers to move away from petrol and diesel vehicles.
Under the grant scheme, the discount applies to eligible car models costing up to £37,000, with the most environmentally friendly ones seeing the biggest reductions. Another 26 models have been cleared for discounts of £1,500.
Carmakers can apply for models to be eligible for grants, which are then automatically applied at the point of sale.
More vehicles are expected to be approved in the coming weeks and the DfT said the policy would bring down prices to “closely match their petrol and diesel counterparts”.
The government has pledged to ban the sale of new fully petrol or diesel cars from 2030.
But many drivers cite upfront costs as a key barrier to buying an EV and some have told the BBC that the UK needs more charging points.
According to Ford’s website, the recommended retail price (RRP) for a new Puma Gen-E starts from £29,905 while a petrol equivalent is upward of £26,060. With the reduction applied, buyers would be looking in the region of £26,155 for the EV version.
The grants to lower the cost of EVs will be funded through the £650m scheme, and will be available for three years.
There are around 1.3 million electric cars on Britain’s roads but currently only around 82,000 public charging points.
Full list of EVs eligible for the £1,500 discount
- Citroën ë-C3 and Citroën ë-C3 Aircross
- Citroën ë-C4 and Citroën ë-C4 X
- Citroën ë-C5 Aircross
- Citroën ë-Berlingo
- Cupra Born
- DS DS3
- DS N°4
- Nissan Ariya
- Nissan Micra
- Peugeot E-208
- Peugeot E-2008
- Peugeot E-308
- Peugeot E-408
- Peugeot E-Rifter
- Renault 4
- Renault 5
- Renault Alpine A290
- Renault Megane
- Renault Scenic
- Vauxhall Astra Electric
- Vauxhall Combo Life Electric
- Vauxhall Corsa Electric
- Vauxhall Frontera Electric
- Vauxhall Grandland Electric
- Vauxhall Mokka Electric
- Volkswagen ID.3
The up-front cost of EVs is higher on average than for petrol cars.
According to Autotrader, the average price of a new battery electric car was £49,790 in June 2025, based on manufacturers’ recommended prices for 148 models.
The equivalent for a petrol car was £34,225, but the average covers a broad range of prices.
Transport Secretary Heidi Alexander said the grant scheme was making it “easier and cheaper for families to make the switch to electric”.
Edmund King, president of the AA, said drivers “frequently tell us that the upfront costs of new EVs are a stumbling block to making the switch to electric”.
“It is great to see some of these more substantial £3,750 discounts coming online because for some drivers this might just bridge the financial gap to make these cars affordable.”
Business
Donald Trump tariffs: Why did Nifty50, BSE Sensex tank in trade? Top reasons stock for market fall – The Times of India
Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, crashed in trade on Thursday, a day after Donald Trump’s 50% tariffs on India came into effect. While Nifty50 closed at 24,500.90, down 211 points, BSE Sensex ended at 80,080.57, down 706 points or 0.87%.The newly imposed tariffs emerged as the main factor affecting market performance, whilst investors simultaneously grappled with additional challenges, including unfavourable global market indicators and continuous withdrawal of foreign investments. These factors collectively intensified the market decline, causing the benchmark indices to fall further.The severe downturn resulted in BSE-listed companies losing Rs 4.14 lakh crore in market capitalisation, bringing the exchange’s total market value down to Rs 445.80 lakh crore.
Why did the stock market fall today? Top reasons
50% US tariffs on IndiaThe new 25% additional tariffs from Washington on Indian goods became effective on Wednesday, creating uncertainty for exporters and overall market sentiment.Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, believes these duties will affect equities temporarily but shouldn’t cause widespread concern.“The 50% tariff imposed on India, which has already come into effect, will weigh on market sentiments in the near-term. But the market is unlikely to panic since the market will view these high tariffs as a short-term aberration which will be resolved soon,” Vijayakumar said, noting US Treasury Secretary Scott Bessant’s statement that “at the end of the day India and US will come together.”Additionally, Vijayakumar identified high valuations and poor earnings performance as ongoing issues. He expects export-focused industries to experience short-term difficulties, whilst suggesting investors consider moving towards reasonably priced domestic consumption sectors. He recommends transitioning from volatile small-cap investments to more stable large-cap consumer stocks for better risk management.FII sell-off continuesForeign institutional investors extended their selling momentum for the third consecutive session. Exchange data showed that on August 26, FIIs sold shares valued at over Rs 6,500 crore. Conversely, domestic institutional investors emerged as net buyers, investing Rs 7,060 crore.The selling pattern has affected multiple sectors. In early August, FIIs withdrew approximately Rs 31,900 crore across eight sectors, with financial and technology sectors experiencing the highest outflows. Net equity sales reached Rs 20,976 crore in the first half of the month, following July’s withdrawals and pushing the total outflows for the year to Rs 1.2 trillion.Earlier this month, Jefferies reported that foreign portfolio investor presence in India had reached its lowest level in a decade. Despite consistent domestic inflows providing support, analysts suggest that any market recovery could remain unstable.Dr. V.K. Vijayakumar of Geojit Investments emphasised the importance of domestic institutional support. “The strong pillar of support to the market is the aggressive buying by DIIs flush with funds,” he noted, explaining that domestic investments are helping balance the foreign outflows.Global markets in redAsian markets displayed weakness on Thursday as investors weighed Nvidia’s exceptional earnings against growing worries regarding the company’s business interests in China.The MSCI Asia-Pacific index, excluding Japan, fluctuated throughout the session before declining 0.2%. Similarly, US stock futures declined during extended trading hours, with S&P 500 e-minis dropping 0.2% and Nasdaq futures declining 0.4%. Despite reporting outstanding results, Nvidia’s shares retreated as uncertainties persisted over its Chinese operations amidst ongoing US-China trade tensions.Japanese markets showed volatility following news that Tokyo’s chief trade representative cancelled a planned visit to Washington, postponing discussions about a recently concluded trade agreement. The Nikkei 225 registered a 0.4% increase. In contrast, Hong Kong’s market performance weakened, with the Hang Seng Index recording a 1% decline.Market sentiment further deteriorated following US political developments, as President Donald Trump announced the removal of Federal Reserve Governor Lisa Cook. This decision raised questions about the central bank’s autonomy, although Cook has indicated her intention to legally contest the dismissal.Technicals show market weaknessTechnical indicators suggest market weakness ahead, although some strategists anticipate a potential short-term recovery.At Geojit Investments, Chief Market Strategist Anand James observed bearish conditions, identifying 24,071-23,860 as target levels. He acknowledged that the sharp 2% drop over four sessions could spark a recovery, with 24,780 and 24,870 acting as resistance points. “Inability to float above 24,630 or clear 24,900 will signal that bears continue to have the upper hand,” he said.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
Business
Stock Market Updates: Sensex Slides 700 Points, Nifty Below 24,550; IT, Realty Stocks Under Pressure
Last Updated:
Domestic equities are trading under pressure on Thursday, with export-focused stocks facing headwinds
Sensex Today.
Sensex Today: Indian equities extended losses on Thursday, August 28, as markets digested the impact of fresh 50% tariffs on US exports that came into effect a day earlier.
At 1:30 PM, the BSE Sensex was down 562 points, or 0.70%, at 80,224, while the Nifty50 fell 163 points, or 0.66%, to 24,549.
Shriram Finance, HCL Tech, Infosys, Sun Pharma, Tata Motors, TCS, Power Grid, Bharti Airtel, IndusInd Bank, ICICI Bank, Trent, Jio Financial, and M\&M led the Nifty losers. On the other hand, Titan, Adani Ports, Asian Paints, Larsen & Toubro, Eternal, and Bajaj Finance bucked the weak trend.
The new duties, among the steepest in Asia, follow India’s continued imports of Russian crude oil and have strained ties between New Delhi and Washington. Shares of export-oriented sectors such as apparel, textiles, auto parts, engineering goods, gems & jewellery, shrimp, and carpets were in focus.
In the broader markets, the Nifty Midcap and Smallcap indices shed 0.9% each. Volatility also inched up, with India VIX down 0.9%.
Sectorally, IT and Realty indices slipped over 1% each, while all major sectors ended in the red barring Consumer Durables, Metals, and Oil & Gas.
Global Cues
In contrast, most Asian benchmarks were trading higher, tracking overnight US gains before a late pullback. Japan’s Nikkei rose 0.3%, while South Korea’s benchmark gained 0.3%, leading advances on the MSCI Asia Pacific index.
Meanwhile, US futures slipped in Asian trading after chipmaker Nvidia’s sales outlook missed lofty expectations, hinting at a slowdown in AI-driven growth after years of strong momentum.
On Wednesday, the S&P 500 gained 0.24% and the Nasdaq rose 0.21%, both closing in positive territory.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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