Home Depot has reported higher sales for the third quarter (Q3) of 2025 but slashed its full-year earnings outlook, citing softer demand and macroeconomic pressures.
The retailer, based in Atlanta in the US state of Georgia, posted net sales of $41.4bn for the quarter, an increase of 2.8% compared with the same period a year earlier.
The company stated that the higher sales were supported in part by its recent acquisition of building products distributor GMS.
Around $900m of that total came from GMS, which contributed approximately eight weeks of revenue following the completion of the deal.
Comparable sales edged up 0.2%, with US comparable sales rising 0.1%.
Net earnings were unchanged at $3.6bn, though diluted earnings per share slipped to $3.62 from $3.67 a year earlier.
Operating income declined 1.2% to $5.35bn from $5,42bn a year previously.
The retailer's gross profit rose almost 3% year-on-year to $13.81bn.
Home Depot chairman, president and CEO Ted Decker commented: “Our results missed our expectations primarily due to the lack of storms in the third quarter, which resulted in greater than expected pressure in certain categories. Additionally, while underlying demand in the business remained relatively stable sequentially, an expected increase in demand in the third quarter did not materialise.
“We believe that consumer uncertainty and continued pressure in housing are disproportionately impacting home improvement demand.”
Home Depot now expects full-year sales to grow by around 3%, with GMS contributing $2bn in additional revenue.
Comparable sales are forecast to be slightly positive for the comparable 52-week period.
It anticipates full-year adjusted earnings per share to decline by around 5% from the previous year, compared with earlier guidance for a 2% decrease.
Looking ahead to fiscal 2025, Home Depot plans to open 12 new stores.
It is targeting a gross margin of 33.2% and an operating margin of 12.6%, with adjusted operating margin expected to be approximately 13%.
